Bitcoin Bear Market Alert: Is $55K the Next Stop?
Bitcoin is once again testing conviction. After dropping below $66K and triggering ~$177M in long liquidations, BTC sharply reversed above $69K — forcing ~$140M in shorts to close. This whipsaw move confirms one thing: leverage is driving volatility more than steady spot demand.
At the time of writing, Bitcoin trades near $68.7K, while the Fear & Greed Index sits at 9 (Extreme Fear). Sentiment is fragile.
🔎 Key Levels to Watch
◾ Support: $63K–$65K
A breakdown here increases downside risk.
◾ Resistance: $69K–$71K
A clean break and hold above $70K could shift short-term momentum bullish.
On-chain data from Glassnode shows traders expect larger volatility ahead, signaling the current range may not last.
📊 Why $55K Matters
According to CryptoQuant, BTC’s realized price sits near $55K. Historically, bear markets often see price dip 24–30% below realized price before forming a macro bottom.
For now:
◾ Over 50% of BTC supply remains in profit
◾ Long-term holders are not aggressively selling
◾ No full capitulation yet
🧠 What’s Next?
If selling accelerates, $55K–low $50Ks becomes a realistic scenario.
If bulls reclaim $70K decisively, recovery momentum could build.
Bitcoin is in a decisive phase — high fear, rising volatility, and compressed price action. The coming months may determine whether this is a deeper correction or early recovery.