Bitcoin moved closer to 98,000 dollars on Thursday, extending a month long slide that has seen the cryptocurrency set a pattern of lower lows. The decline mirrors October’s performance and adds to growing concerns about weakening momentum as traders reassess market risks.
The latest downturn follows a period of political uncertainty in the United States. President Donald Trump signed legislation on Wednesday to end the longest government shutdown in the country’s history, yet market sentiment has remained cautious. Analysts say the resolution removed one risk factor, but lingering economic concerns continue to weigh on investor appetite for volatile assets.
Market analyst Ali Martinez has highlighted a potential head and shoulders formation on the Bitcoin chart. According to his view, the pattern could drive the price toward 83,000 dollars if confirmed. Such a move would represent around a 15 percent drop from current levels and reinforce the bearish structure that has been developing through November.
Another pressure point is Bitcoin’s fall below its 200 day simple moving average, a widely watched indicator that often acts as support in upward market cycles. Martinez notes that losing this level during periods of weakness has historically opened the door to sharper declines. If the pattern repeats, he warns that Bitcoin could even slide under its realized price, which is estimated at 56,200 dollars. A drop of that scale would imply a correction of more than 40 percent from present prices.
Growing Concerns Over a New Crypto Winter
The shift in sentiment comes despite expectations of supportive trends, including increased market liquidity and possible interest rate reductions from the US Federal Reserve. While those factors have boosted risk assets in the past, analysts say they may not be enough to counter the current wave of technical and macro driven caution.
The idea of a renewed crypto winter has begun to circulate among traders who fear that the latest pullback could mark the start of a broader downturn. The retreat has already erased much of Bitcoin’s progress from earlier in the year. At the time of writing, the asset trades at 98,150 dollars, down nearly 13 percent over the past month and holding a modest 9 percent gain for the year.
Many analysts say the coming weeks will be decisive as markets look for signs of stabilization. A recovery above the 200 day average could shift momentum back toward the upside, while continued weakness would strengthen the case for a deeper correction.