Bitcoin price has faced sharp losses in recent days, reflecting the pressure of a bearish market environment. 

The crypto king dipped below key thresholds, sparking fears of a potential bear market structure ahead. While investors are closely watching for signs of reversal, the outlook remains uncertain.

Bitcoin Has A Pain Threshold

The Short-Term Holder (STH) Cost Basis Model highlights Bitcoin’s vulnerability at the moment. The STH cost basis currently sits at $111,400, meaning that sustained trading below this level could trigger deeper downside pressure. Remaining above this threshold is crucial to avoid further structural weakness.

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A decisive break below the cost basis would likely confirm bearish momentum, leading to a larger drawdown for Bitcoin. Such a move could also delay recovery and extend losses across the crypto market. 

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Social sentiment surrounding Bitcoin shows a surge in “buy the dip” mentions across major platforms. The indicator recorded its highest level of activity in 25 days, reflecting growing optimism among retail traders. While positive on the surface, this trend often signals the opposite price outcome.

Historically, Bitcoin tends to move against crowd expectations when retail traders anticipate quick rebounds. If optimism remains high at around $112,200, the market may still face more downsides. Once sentiment cools and panic selling occurs, deeper accumulation opportunities may emerge.