He also mentioned that the inability of Bitcoin to maintain the $80,000 mark, alongside copper’s decline below the $6.40 per pound support level after the U.S. midterm elections, could signify a wave of selling pressure as the year draws to a close.
The Counterarguments
In contrast, Scott Melker contended that the figures contradict this narrative. He noted that the Nasdaq has approximately reached the midpoint of a 20% drop, while Bitcoin remains far from the $10,000 threshold.
Melker added that the Nasdaq has officially entered correction territory, being over 10% down from its recent peak, whereas Bitcoin is still around $17,000 to $18,000 higher than its lowest value.
Insights from On-Chain Data
Analyst Darkfost observed that a significant portion of Bitcoin investments were exchanged when the price ranged between $75,000 and $85,000, accounting for around $26 billion at the current valuation. Approximately 30% of the total invested capital, which amounts to roughly $328 billion, is currently in profit, while $756 billion is facing losses.
According to Darkfost, fewer transactions occurred between $70,000 and $75,000. Should the $75,000 level break down, the $70,000 range may become the next key support point.
On November 5, Julio Moreno highlighted the challenging conditions for Bitcoin, noting a decline in demand and a contraction in stablecoin liquidity. He identified support levels between $73,000 and $76,000.