Despite a sharp 11.36% drop to $88K, key indicators suggest Bitcoin's bull run remains intact. Here’s a deep dive into the charts signaling continued momentum and the factors behind the recent crash.
3 Charts Indicating BTC Bull Run Continuation
1. Fear and Greed Index Flashes Extreme Fear
The Fear and Greed Index hit "extreme fear" after the crash, historically a contrarian signal during bull markets. While short-term volatility may persist, prolonged fear rarely aligns with market tops.
👉 Bitcoin's bull run potential
Key Insight:
- Bull peaks typically show "extreme greed."
- Current sentiment mirrors mid-cycle dips, not exhaustion.
2. Bitcoin Power Law Cloud Holds Strong
The Power Law Cloud model—a long-term cycle tracker—places the current drop within expected deviations. According to analysts:
"Bitcoin could consolidate near $95K for months and still target $200K+ by November. The pattern’s intact—stay patient."
Why It Matters:
- Past cycles adhered to this framework.
- Recent volatility fits the model’s bounds.
3. ISM Manufacturing Index & BTC’s Inverse Correlation
Bitcoin’s price often moves inversely to the ISM Manufacturing Index, a gauge of U.S. economic health. Recent data shows BTC rising as ISM weakens—a trend reinforcing its hedge potential.
Macro Takeaway:
- Weak ISM = bullish for BTC.
- Selling now risks missing parabolic phases.
Why Did Bitcoin Crash to $88K?
1. ByBit’s Hack & Market Panic
The $1.5B ByBit breach triggered initial selling, but excessive leverage amplified the drop.
2. Leverage Ratios Hit Dangerous Highs
Data from CryptoQuant reveals:
- Leverage spiked 17% before the crash.
- Even post-crash, ratios rebounded, signaling overconfidence.
Risks:
- High leverage = cascading liquidations.
- $93K is now a critical level; failure here could deepen corrections.
FAQs
1. What caused Bitcoin’s crash to $88K?
ByBit’s hack, over-leveraged positions, and panic liquidations compounded the sell-off.
2. Is the Fear and Greed Index reliable?
Yes—extreme fear often precedes rebounds in bull markets.
3. How does the Power Law Cloud predict cycles?
It maps BTC’s historical deviations, suggesting current dips are normal within long-term trends.
Key Levels to Watch
- Support: $88K (critical hold).
- Resistance: $93K (flip could reignite uptrend).
Bottom Line: While the crash stung, these charts hint at unfinished bullish potential. Trade cautiously, but don’t mistake a dip for a dead trend.