Bitcoin Struggles as Market Sentiment Weakens
Bitcoin may continue facing a difficult market cycle until early 2027, according to on-chain analyst Ki Young Ju. He pointed to investor behavior and profit-taking trends as signs that the market still hasn’t reached a true recovery phase.
In a post shared on X, Ju explained that Bitcoin investors typically go through long periods of declining profits after major sell-offs begin. He noted that similar cycles in previous years lasted around 18 months before sentiment finally improved.
“The trend only changes when unrealized profits rise and realized profits fall. We’re not there yet.”
Ju said.
On-Chain Data Signals More Weakness
The warning comes as Bitcoin continues trading near the $73,000 range without showing strong momentum. Data tracking investor profitability suggests the market could still be in the middle of a broader correction phase.
Previous cycle peaks in 2014, 2018, and 2022 showed similar patterns before extended downturns followed. Analysts believe current conditions are beginning to resemble those periods.
Liquidations Rise Across the Crypto Market
The recent slowdown has also triggered heavy liquidations in the derivatives market. Over the past 24 hours, millions of dollars in long positions were wiped out as traders bet on a stronger Bitcoin recovery that never materialized.
At the same time, overall open interest in crypto markets has continued to decline, showing reduced appetite for risk among traders.
Global Tensions Add More Pressure
Beyond technical indicators, macroeconomic uncertainty is also weighing on Bitcoin. Rising geopolitical tensions involving the United States and Iran have shaken investor confidence across financial markets, including crypto.
Bitcoin’s market value has also slipped behind several major global companies and traditional assets as volatility continues to dominate trading activity.
Despite the pressure, some traders remain optimistic that Bitcoin could regain strength later in the cycle once broader market conditions stabilize.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
