Bitcoin stagnates below $90,000... is it entering a correction phase?

Source: DigitalToday Original Title: Bitcoin Stalls Below $90,000… Is it Entering a Correction Phase? Original Link:

Bitcoin is attempting to rebound after recently overcoming a downward trend, but the market's reaction is cautious.

According to the on-chain data analysis by blockchain media, it has been reported that the current situation is closer to a correction phase rather than a downward reversal.

The realized market capitalization change ( dropped sharply to 1.4%, falling below the lower band. This is an indicator reflecting a decrease in net inflows and a weakening of overall market demand, suggesting that investors are in a wait-and-see phase rather than aggressively buying. Historical cases show that such corrective phases are more likely to lead to a re-accumulation stage rather than a sharp decline.

Additionally, the short-term holder to long-term holder supply ratio ) STH-LTH Supply Ratio ( has risen to 18.5%, breaking through the upper band. This indicates an increase in market participation by short-term investors, which could act as a factor increasing volatility and the potential for short-term price fluctuations. An increase in short-term holders raises market liquidity, but rather than having a clear direction, prices tend to oscillate within a specific range.

Bitcoin is currently trading in the range of $87,000, maintaining a support level of $86,822. However, it is stagnant, failing to break through the resistance level of $89,800. Considering on-chain data and the increase in short-term investors, Bitcoin needs strong buying pressure for further upward movement.

If Bitcoin breaks through $89,800, it could rise above $91,521 and potentially reach $95,000, but at this point, there is a high likelihood that the correction phase will continue.