Bitcoin is going through a challenging period that is significantly testing investors’ patience. The latest on-chain and market data show that the price has entered the deepest oversold zone since 2023. The decline has lasted 73 days since reaching its all-time high and has not yet delivered the expected year-end reversal, reports Cryptopolitan.

Bitcoin under pressure from long-term sell-off

Bitcoin is trading around 87,000 dollars, with dominance reaching 59.82%, according to TradingView. The price is only about 10,000 dollars above the yearly lows, sparking discussions about erasing the upward momentum from previous months.

The October crash and massive liquidations left a mark on the market that investors still feel more than two months later. Historical data suggest that Bitcoin needs at least three months to restore liquidity and speculative interest. Current developments confirm this scenario.

The drop below 90,000 dollars reinforced the belief that a return to a full bull market will take more time. The derivatives market remains cautious, with open interest down to approximately 27.4 billion dollars, marking a six-month low. Compared to the October peak above 44 billion dollars, this represents a significant retreat of risk capital.

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Market seeks bottom, but investors anticipate further declines

Although several indicators point to oversold conditions, the price has not yet found the strength for sustainable growth. The spot market has failed to halt the downward trend, and short phases of sharp selling repeatedly thwarted attempts to break higher levels. The market also remains vulnerable to liquidations targeting long positions during periods of increased liquidity, according to Coinglass data.

Options indicate that traders will start changing their stance only after a recovery above 90,000 dollars. Below this level, they prefer protection against further declines. Approximately 64% of Bitcoin supply is currently in profit, which, according to Glassnode, corresponds to levels from 2023. Although large wallets have already realized some profits, persistent price weakness may trigger further phases of capitulation. The market is thus balancing between hope for a local bottom and fear of continued downward pressure.

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