Bitcoin Price Holds Near $79K as Cycle Drawdowns Narrow
Bitcoin's price held steady near $79,200 on September 9, according to data from Cryptonews.net. This recovery comes after a sharp decline from its June low, and it supports Wintermute's argument that the current downturn has been shallower than previous bear markets.
The market maker compared Bitcoin's current drawdown of around 37% below its record high of $125,600 to the losses seen in previous cycles. In the 2018 bear market, Bitcoin fell by over 83%, and in the 2022 bear market, it declined by approximately 77%. Wintermute attributed the smaller loss partly to exchange-traded funds (ETFs) and institutional investors entering earlier during market weakness.
However, not all indicators are bullish. Technical analysis shows that momentum is cooling near $79,000, with a decline in relative strength index (RSI) values and a histogram fall to minus 436.98 on the MACD line. Trading volume also declined after the move toward $79,000.