Bitcoin Nosedives Below $90K, but Bottom Might Be Close

Cover image via U.Today Read U.TODAY on Google News Bitcoin, the leading cryptocurrency, has collapsed below the $90,000 level. It is currently changing hands slighlty above the $89,000 level. Advertisement Is this a healthy correction? According to Chris Kuiper, vice president of research at Fidelity's digital asset arm, the current on-chain metrics indicate that this could be a healthy drawdown. Kuiper is looking at the market through the lens of on-chain behavior, which tells you how different groups of Bitcoin holders are reacting to the recent price drop. Specifically, he focuses on the short-term holder MVRV ratio, which essentially measures whether recent buyers are sitting on profits or losses. When this ratio drops sharply, it means that people who bought Bitcoin in the past few weeks are now underwater. Historically, during bull markets, this kind of situation tends to trigger a brief wave of capitulation: recent buyers sell in fear, the market “resets,” and price finds a local bottom before continuing higher. HOT Stories BREAKING: BitWise's XRP ETF Final Form Filed 'Never Back Down': Strategy's Saylor Reacts to 30% Bitcoin Price Plunge Morning Crypto Report: XRP Briefly Hits Abnormal $90 on Kraken, Coinbase Whale Absorbs 272,556,924,649 SHIB, Bitcoin in Bull Mode Above $87,600: Bollinger Bands Ripple CEO: What’s Next for XRPL? What Kuiper finds significant is that the pattern forming right now closely resembles earlier drawdowns that happened within bull markets. In those periods, Bitcoin typically falls 20–30%, short-term holders get squeezed, the MVRV chart forms a distinct valley, and soon after, the bull trend resumes. Advertisement Since the broader environment hasn’t been hit by any major negative news—no regulatory shocks, no ETF collapses, no macro disaster, he sees this pullback as fitting the blueprint of a normal, healthy correction rather than the start of a major reversal. #Bitcoin Price Prediction