Concerns are growing over a further decline as Bitcoin (BTC) has broken below the $72,000 level, the average purchase price zone (Cost Basis Zone) for short-term holders.

On-chain analysis firm Swissblock pointed out, "While the market interpreted the price consolidation within this zone as an energy accumulation process for a bullish trend, BTC ultimately failed to maintain its support line." They further noted, "It subsequently attempted a rebound but failed to reclaim the level, lacking sufficient buying volume."

The firm then diagnosed, "The market has transitioned into a phase where a downtrend could persist, rather than the previous correction and consolidation phase," and explained, "BTC currently stands at a crossroads, where it will either resume the bull market or face a prolonged bear market. To restore the bullish trend, it must break through and stabilize above the average investor price zone once again."