Bitcoin’s (BTC) historic bull run is being tested as the leading cryptocurrency has dropped below $98,000, a drop of nearly 10% from its all-time high of $109,000.
Van Straten Says Bitcoin's Bull Run Will Face Major Test If BTC Drops Below $91K
Analysts warn that any further declines below $91,000 could put significant pressure on the rally.
The latest pullback has been attributed to concerns over China's DeepSeek AI, whose hyper-efficient AI model is seen as a major challenge to the US's tech dominance.
That, along with a broader sell-off in U.S. markets, contributed to heightened risk aversion. Nasdaq futures fell 4%, signaling a broader correction in stocks.
On the other hand, Bitcoin’s bull run has suffered multiple 15% corrections since Donald Trump won the US elections.
BTC has experienced double-digit declines several times since its rise from $66,000 to $109,000, making the current decline appear consistent with previous market behavior.
A key support level to watch is the short-term owner cost floor, currently at $91,000.
This metric, which tracks the average on-chain cost of coins moved over the last 155 days, has historically served as a floor in bullish markets.
However, the bearish sentiment is growing. The negative Bitcoin funding rate is suggesting that traders are betting on further downside. Meanwhile, BitMEX co-founder Arthur Hayes predicted a correction to $70,000-$75,000 before BTC eventually climbs to $250,000.
With both crypto and equity markets under pressure, investors are closely watching whether Bitcoin can hold above $91,000 or if a deeper correction is on the horizon.
*This is not investment advice.
