Bitcoin’s price has faced significant declines over the last two months, falling from above $126,000 down to $88,000—a loss of around 30%.

Analysts are currently debating if the market has entered a bearish phase or if this is simply a typical correction during a bull run. Ali Martinez believes Bitcoin must reclaim a crucial level to reboot its bullish trend.

$101,840 to Be Reclaimed

In a recent post on X, the analyst with over 160,000 followers claimed that Bitcoin needs to surpass its short-term holder realized price to exhibit bullish behavior. His data suggests that this key level is near $102,000, necessitating a 15-16% rise from current values.

Meanwhile, Merlijn The Trader has also commented on the recent performance of Bitcoin, focusing on the Relative Strength Index (RSI). This indicator has dipped well below 30 for about three weeks, which is generally recognized as an oversold condition.

Merlijn noted that the RSI can remain oversold or overbought for some time as trends continue. He indicated that in similar scenarios, Bitcoin typically trades sideways for 20-25 days, and with 20 days surpassed, he predicts an imminent “explosive bounce.”

BITCOIN RSI JUST HIT THE SWEET SPOT.
Every time RSI dips below 30: Sideways grind into explosive bounce.
The average lag: ~25 days.
We’re on day 20.
History says upside is next.
You’re either early…
Or you’re late.
— Merlijn The Trader (@MerlijnTrader) source

The Downside

However, not everything is optimistic. Additional data from Martinez reveals that the one-year change in Bitcoin whale holdings has decreased by more than 160,000 units. He explained that these market participants have predominantly been net sellers over the past year, typically indicating deeper corrections rather than recovery stages.

The Bitcoin spot ETFs are also witnessing a significant pullback, with nearly $500 million withdrawn from the funds just last week. Martinez has also warned that if Bitcoin falls below the $83,300 support level, it could plunge to $63,000. For the time being, this support level seems to be preventing further price declines.