Bitcoin breaks key support level as Glassnode warns of further price breakdown

Bitcoin has broken a crucial support level near $83.4K, the lower bound of the short-term holder cost basis model, following a 9.2% drop over the past week, now trading around $81,200. This decline was partly triggered by the U.S. dollar strengthening after President Trump's surprise nomination of Kevin Warsh as the next Federal Reserve chair. On-chain data from Glassnode indicates that long-term holders are selling at the fastest pace since August, although the supply held at a loss by short-term holders remains below the 55% capitulation threshold. Derivatives markets show cautious sentiment, with options pricing in higher volatility risk if support breaks. Despite the fear gripping the market, some analysts, like Santiment, suggest that the current extreme bearish sentiment could be a contrarian indicator signaling a local bottom is near, while others, like Bitwise's CIO Matt Hougan, believe the market is in the late stages of a bear-market bottom.

(Source：CoinDesk)