- Bitcoin faces a crucial test at $84K, with potential for breakout or breakdown.
- The CVDD channel signals key support, with past breakdowns leading to sharp corrections.
- A drop below $84K could send Bitcoin toward $64,700 or even $60K.
Bitcoin— BTC, might be at a turning point. The $84,640 mark serves as a key battleground. The CVDD channel, a trusted on-chain indicator, highlights this level as a make-or-break zone. Holding above could fuel a rally. Dropping below might trigger a sharp decline. Traders now face a moment where every move could decide the next big trend.
The CVDD Channel – A Guide to Bitcoin’s Next Move
The Cumulative Value Days Destroyed Channel tracks investor behavior. This metric measures the movement of older coins to reveal hidden patterns. Fibonacci-based multiples create key support and resistance zones. These levels have shaped Bitcoin’s price history, offering clues about future moves. Bitcoin now sits near the CVDD × 2.618 level. This zone has provided strong support in past uptrends. However, similar breakdowns in mid-2022 and late 2024 triggered sharp corrections. Both times, price dropped to the next lower CVDD band before rebounding.
The Fight for $84K – A Repeat of the Past?
Past data shows green arrows marking support zones that led to rallies. Red arrows highlight failed supports that led to sharp declines. This historical pattern suggests two possible outcomes. Holding this level could spark a breakout. Losing this zone might invite a steep fall.
A strong bounce from $84,640 could mirror late 2023. That period saw Bitcoin consolidate before pushing to new highs. Sustained strength here would reinforce bullish momentum. A break below $84K could send the price tumbling toward $64,700. This level aligns with April 2021’s all-time high, making it a crucial psychological zone.
Losing that support could open the door for a drop to $60K. Historical trends suggest breakdowns often set the stage for major rebounds. A brief plunge might shake out weak hands before another surge begins. Bulls and bears now face a high-stakes battle. Whoever wins this fight will decide Bitcoin’s next big move.
