Bitcoin price faced increased volatility with a 12% drawdown during consolidation. Realized Cap Impulse weakens, highlighting subdued market momentum. As BTC tested $92,746 support, price analysis anticipated either a rebound to $100,000 or a potential decline toward $85,000.

Bitcoin Price Drawdown Highlights Volatility Amid Consolidation Phases

Drawdown analysis of Bitcoin showed volatility caused in the consolidation phase. The market swept in at an 8.9% drawdown in 2023, much milder conditions than prior cycles. However, during the ongoing consolidation phase, the drawdown increased to 12% and was more prone to fluctuation.

The previous consolidation phases showed much higher volatility than this phase, with a maximum drawdown reaching 26%. It illustrates just how extreme Bitcoin has gone through while in murky market waters and the need to pay attention to drawdown patterns.

These volatile swings present traders and analysts the chance to judge the relative stability of Bitcoin’s position in the market.

Further, Bitcoin’s price momentum overlaid the drawdown trends with the SMA-30d stabilizing at 12% from its peak but the market was at a key point.

The dynamics of these were suggestive of stability or a directional shift, which makes it very important to watch market conditions extremely closely.

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Realized Cap Impulse Shows Cautious Sentiment

After reaching local resistance levels, the Realized Cap Impulse and long-term realized cap Impulse indicators began to decline. Although investors were showing increased activity recently, this decline indicated that realized capitalization momentum was also weakening.

Yet the market did not sufficiently maintain a huge change in capital dynamics, proved a sense of caution by actors in the market. The reversal suggested that a stabilization phase has begun or there may be some short-term downward pressure on Bitcoin prices.

The lack of a euphoric stage before the significant corrections was indicative of modest enthusiasm in market. It’s not like Bitcoin was in a final phase, looking like it’s closed to the top of the cycle.

Realized Cap Impulse values were also not showing the peaks we saw in previous bullish cycles such as 2017 and 2021. This implied that the trend hasn’t ended yet, but Bitcoin is still in a recovery/accumulation phase.

So far, the investors seemed to be adopting a risk-averse approach, as there is little optimism about reaching and surpassing new all-time highs in the near future.

BTC/USD Enters Critical Support Zone

Bitcoin’s price showed consolidation from key horizontal support & resistance levels. BTC at $91,700 and tested a key midpoint of its previous range at the $92,746.17 resistance level.

Moreover, bears remained in charge due to the fact that the price failed to hold above $95,000, a former supertrend resistance.

The negative histogram on the MACD indicator confirmed bearish momentum as well as the MACD line crossed below the signal line.

If Bitcoin falls below the support level of $92,746.17 it is likely to drop to $85,000, or 8.27% below current levels. In this scenario, we would have a bearish breakdown from the range.

On the flip side, if Bitcoin can reclaim the $92,746.17 resistance to support, a bounce to either $98,693.86 or $100,000 remains possible. The chart shows some bullish potential due to higher volume and fresher buying.