Bitcoin is holding above $90,000, but the risk-off signal suggests a potential correction. The Profit–Loss sentiment hit a rare -3 extreme, indicating a structural correction. The -32% drawdown places BTC in a vulnerable zone between correction and capitulation. Bitcoin researcher warns of continued downside risk near $90,000.

CryptoQuant’s Risk-Off model shows elevated correction risk with the oscillator near the High-Risk zone. The profit/loss score dropped to -3, reflecting bearish sentiment. The current -32% drawdown exceeded normal pullbacks, placing Bitcoin in a vulnerable zone. Continued downside risk remains high without improvement in macroeconomic conditions.

Onchain data from Glassnode shows realized losses spiking amid Bitcoin’s drawdown, driven by short-term holders. Long-term holder losses remain muted, reflecting core holder resilience. Bitcoin’s battle to reach $100,000 is a psychological turning point, with major round numbers often producing volatility and failed attempts.

The growth rate difference (Market Cap vs. Realized Cap) remains negative, indicating structural weakness for Bitcoin. Analysts are cautious about BTC’s price action, with a key resistance level at play. Breaking through could lead to rapid gains, while rejection may keep BTC in a range. Bitcoin accumulation trends strengthen amid realized losses.

Read more at Cointelegraph: BTC Risk-Off Signal Remains High Below $100K