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Bitcoin’s (BTC) ongoing volatility below the $110,000 mark is raising questions about whether the asset is destined for further losses, but historical data suggests otherwise. According to on-chain data shared by analyst Ali Martinez, Bitcoin’s trader profit/loss margin currently sits around -5%. Historical patterns show that when this margin drops below -12%, the cryptocurrency tends to rebound strongly, signaling the end of major downtrends. Martinez’s data, retrieved from CryptoQuant on October 22, shows deep negative margins, indicating widespread unrealized losses among short-term holders, which have historically aligned with cyclical bottoms in Bitcoin’s price.  Bitcoin profit/loss margin. Source: CryptoQuant Each instance, including those in 2019, 2020, and 2022, preceded significant recovery phases. Meanwhile, Bitcoin’s realized price, the average price at which all coins were last moved on-chain, remains below the spot price, meaning the majority of investors are still in profit. This suggests the market has not yet reached the level of widespread capitulation seen in previous bear market lows. The reassuring data comes as Bitcoin lost the $110,000 level in the past 24 hours, with broader markets suffering losses amid profit-taking. In the short term, however, technical indicators suggest BTC is not yet out of the woods. Bitcoin under threat of dropping to $100,000 For instance, pseudonymous cryptocurrency analyst BitBull noted in an X post on October 22 that Bitcoin has fallen below its weekly bull market support band, around $110,000, a technical zone that has recently acted as a crucial indicator of trend strength. $BTC has lost its weekly bull market support band. This isn’t a good sign, as it has historically resulted in 10%-20% correction. Do you think Bitcoin is going below $100,000? pic.twitter.com/0SzzdGRHgb — BitBull (@AkaBull_) October 22, 2025 In past cycles, similar breaks have often triggered 10% to 20% corrections, as traders reassess momentum and short-term…

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Filed under: News - @ October 22, 2025 2:28 pm