Bitcoin's quick drop from $90K triggers fear, as data shows typical market pattern.

Bitcoin’s price retraced quickly after rising to $90.2K, sparking increased fear in the community. Data from Santiment indicates the shift fits within a historically typical post-All Time High drawdown phase for Bitcoin.

Key players such as Santiment and major exchanges like Binance have highlighted this movement. Santiment’s analysis focuses on social sentiment, noting a rise in fear and “top is in” narratives after the price adjustment.

The impact on the market is reflected in a 30% drop from the October high, with trading mainly between the low- to mid-$80Ks. Liquidations in the futures market have contributed significantly to this downturn.

Financial experts point to the ETF flows and macro-economic shifts affecting Bitcoin as these variables intersect with market behavior. The Coinbase Bitcoin Premium Index shows institutional selling patterns, hinting at broader strategic recalibrations.

On-chain metrics highlight negative sentiment and liquidity shifts contributing to Bitcoin’s volatile behavior. Historical patterns suggest eventual recovery, although current drawdowns are not hitting past bear market levels yet.

Insights into potential outcomes point towards a cycle that is post-peak rather than hitting the bear market. Historical data implies accumulation would be favorable during current price levels under normal market conditions.

“Bitcoin’s volatility has sparked fear, but historically, patient participants who bought during periods of elevated bearish sentiment and negative MVRV have been rewarded over multi-month horizons.” – Maksim Balashevich, Founder & CEO, Santiment