One Slip And Dogecoin Could Plunge Back Into A Bear Market: Analyst

Bitcoin is currently trading around the $90,000 mark, reflecting a significant market shift. Analysts are divided on whether this decline below $100,000 signals the start of a bear market or if Bitcoin is poised for a recovery. Recent data indicates that nearly 7 million BTC are now at an unrealized loss, the highest since January 2024, highlighting the ongoing volatility and uncertainty in the cryptocurrency market.

Binance founder Changpeng Zhao, known as 'CZ', faced a surprising inquiry about the potential refund of a $4.3 billion settlement by the US government following his presidential pardon. His response has sparked significant interest within the cryptocurrency community, adding complexity to ongoing discussions about regulatory actions and their implications for crypto exchanges.

Dogecoin price is currently defending the $0.15 level as a double bottom pattern begins to emerge. If this pattern is confirmed, it may indicate a potential rally towards $0.20 and beyond.

The recent downturn in cryptocurrency markets has resulted in a significant pullback, with October witnessing $2 billion in liquidations. Despite this, only Binance has encountered serious issues. Cecilia Hsueh from MEXC asserts that this crash does not resemble the catastrophic collapses of Luna and FTX in 2022.

Ethereum's price is currently at a critical juncture, trading at $3,079 with signs of instability as market activity declines. Despite a slight daily gain of 1%, the cryptocurrency faces pressure as traders withdraw and the support level around $3,000 is at risk amid record high leverage and inflows on Binance.

On-chain data indicates that Bitcoin short-term holders have transferred 65,200 BTC to exchanges at a loss, signaling a capitulation wave among these investors. This group, defined as those who acquired their Bitcoin within the last 155 days, typically reacts to market volatility by selling. The recent bearish trend has prompted these holders to liquidate their positions, reflecting a broader trend of panic selling in the market.

On Tuesday, Bitcoin (BTC) fell below $90,000, reaching its lowest price in seven months, resulting in over $1 billion in liquidations across the crypto market within 24 hours. Analysts from the Bull Theory noted that this decline was due to structured institutional selling rather than typical market pressure. Despite Bitcoin's downturn, altcoins have remained stable, indicating a divergence in market behavior during this period of volatility.

Binance has reported an increase in short-term Bitcoin trading activity, driven by traders and automated bots employing volatility-focused strategies rather than long-term holding patterns. This shift indicates a growing interest in short-term gains amid fluctuating market conditions.