Bitcoin loses support from $90,000 as on-chain data points to $70,000

On-chain data indicates that BTC is trading within a new range, between $70,000 and $90,000, with a checkpoint near $83,000.

Bitcoin (BTC) has decisively broken below the psychologically significant $90,000 level and has hit a six-month low below $81,000.

According to analyst CryptoOnchain, this breach heralds a new corrective phase for the digital asset, with their assessment now pointing toward a critical test of the $70,000-$73,000 support zone as the next major battleground for market direction.

A market in correction

The drop was sharp, with Bitcoin’s value down about 17% over the past month and over 6% in the last 24 hours alone, based on recent data from CoinGecko.

This decline pushed assets to levels not seen since April, leading to significant market liquidations. The selling pressure was amplified by activity from long-term holders, with analytics firm Arkham revealing that an early Bitcoin adopter, Owen Gunden, moved $230 million worth of BTC to the Kraken exchange.

This was part of a larger sell-off that saw the entity offloading 11,000 BTC, worth $1.3 billion, since October, introducing significant selling pressure from a source that had been dormant for years.

While the break below $90,000 is technically bearish, CryptoOnchain remains indicated a new trading range is established between $70,000 and $90,000.

They pointed out that the Point of Control (POC), the price level with the highest trading volume, is around $83,000, which could act as a magnet for the price, leading to a period of consolidation. The primary focus for many, however, is the stronger confluence of support waiting below.

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The path to a potential bottom

According to CryptoOnchain, the main area of ​​interest for traders is the $70,000-$73,000 range. This zone not only covers an important technical level; its importance is greatly reinforced by on-chain data showing that it matches the average acquisition cost, or realized price, of large Bitcoin holders.

The statistics shared by the expert show that these entities, which hold between 100 and 1,000 BTC, have a collective cost base of approximately $71,000. Historically, when the market price approaches the average purchase price of large groups of investors, they often step in to buy more to defend their positions, creating a powerful support floor.

Market sentiment, as tracked by analytics platform Santiment on November 20 reflects the persistent fear. Social media is filled with a mix of optimism from those looking to buy the dip, and pessimism from those predicting further losses.

The company suggested that a true market bottom often occurs when retail sentiment turns overwhelmingly negative, marked by a sharp rise in forecasts for prices below $70,000.