Bitcoin’s Wild Start to the Year

So, there we were, all excited about Bitcoin soaring into the new year, when suddenly, like a cold shower on a sunny day, it took a dive on January 3. The crypto world held its breath as Bitcoin stumbled, slipping below the $90,000 mark. Why? Well, President Trump decided to play the military card in Venezuela, and the markets responded like your buddy after he’s had one too many drinks – not well.

Are We at the Bottom Yet?

Now, don’t go throwing in the towel just yet! Despite this hiccup, there are whispers (and by whispers, I mean data) suggesting Bitcoin might be gearing up for a rebound. According to some of the brainiacs on the blockchain, it looks like we could be heading towards a correction low. Sounds fancy, doesn’t it?

The Short-Term Drama

Crypto analyst Darkfost dropped some knowledge bombs recently, stating that the short-term holders of Bitcoin (aka the ones who just can’t seem to hold onto their BTC for long) have been feeling the heat. Their investment game feels more like a rollercoaster with all the ups and downs between $85,000 and $92,000. Talk about a thrill ride!

What are the Numbers?

Darkfost also spilled the tea on the average cost basis for these short-term holders, which sits around $103,000. No wonder they’re sweating bullets! On average, they’re looking at a 15% unrealized loss. Ouch! It’s like showing up to a party only to find out you’re the only one who forgot to bring snacks.

Historical Trends Say…

Looking back at history (because who doesn’t love a good trip down memory lane), whenever the short-term holders have faced significant losses around 15%, it’s often a precursor to a correction low. Is Bitcoin standing on the edge of such a moment again? According to Darkfost, it’s a possibility.

Caution Ahead!

But wait, hold your horses! Darkfost warns that this could also be a big old false alarm if Bitcoin is entering a prolonged bear market. If that’s the case, these unrealized losses might stick around longer than an unwelcome house guest.

Current Bitcoin Status

As we stand here today, Bitcoin is pricing in at around $91,160, which is a slightly happier number boasting over 1% gains in the last 24 hours. And if we zoom out a bit, it seems that BTC has climbed close to 4% over the last week. Not too shabby!