Bitcoin (BTC) dropped to the four -month lowest level 76,700 USD on March 11, after a 6% decrease in the S&P 500 index.

The stock market correction pushed the indicator to the lowest level in six months, because investors valued higher chances for a global economic slowdown.

Despite the 30% decrease in Bitcoin from the highest all -time by USD 109,350, four key indicators suggest that the correction may end.

Batcoin Bessa requires 40% inheritance, forceful USD

Some analysts say Bitcoin has entered bears. However, the current price action differs significantly from the November 2021 disaster, which began with a 41% decrease from USD 69,000 to USD 40,560 in just 60 days.

The comparable scenario would mean a decrease today to USD 64,400 by the end of March.

The current correction reflects a decrease in 31.5% from USD 71,940 on June 7, 2024 to USD 49,220 within 60 days.

In addition, at the end of 2021, the American dollar strengthened against the foreign currency basket, which was reflected in the DXY index, which increased from 92.4 in September 2021 to 96.0 to December 2021.

This time, however, DXY began 2025 at 109.2 and has fallen to 104 since then. Traders argue that Bitcoin maintains the opposite correlation with the DXY indicator, because it is primarily perceived as risk assets, and not protecting the protection against Dollar’s weakness.

In general, the current market conditions show no signs of investors’ transition to cash positions, which supports Bitcoin.

BTC derivatives fit because investors are afraid of AI bubbles

The Bitcoin derivative instrument market remains stable because the current annual Futures premium is 4.5%, despite the 19% drop in price between 2 and 11 March.

For comparison, on June 18, 2022, this indicator dropped below 0% after a 44% rapid decline from USD USD 1,350 to USD 17,585 in just 12 days.

Similarly, the Bitcoin Perpetual Futures financing index rises near zero, signaling a balanced lever between long and shorts. Market bears usually drive excessive demand for brief positions, lowering the financing rate below zero.

Several listed companies with market values ​​exceeding $ 150 billion recorded keen declines from their highest levels, including Tesla (-54%), Palantir (-40%), Nvidia (-34%), Blackstone (-32%), Broadcom (-29%), TSM (-26%) and Service (-25%). The sentiment of investors, especially in the artificial intelligence sector, has become bear among growing fears.

Related: Bitcoin 70 thousand $ FREE SHAFE PART OF “MACRO CORRECTION” on the Bull Market – Analysts

Traders are concerned about the potential closing of the US government on March 15, because legislators must pass the bill to raise the debt ceiling. However, According to The Republican Party remains divided for Yahoo finances.

The key points in the proposal of speaker Mike Johnson are increased defense and immigration expenditure.

Risk markets, including bitcoins, will probably react positively in the event of an agreement.

The real estate crisis is not necessarily negative

Early signs of real estate crisis can accelerate capital outflows into other sporadic assets. According to February 27 data From the National Association of Intermediaries at the National Real Estate Association, American Signatures of the Home Agreements fell to the lowest level in January.

Additionally, opinion of February 23 in the Wall Street Journal revealed that over 7% of federal loans insured by housing administration have at least 90 days, which exceeds the peak of the subprime crisis in 2008.

Basically, the Bitcoin path to recover USD 90,000 is supported by a weaker American dollar, historical proof that 30% price correction does not signal the bear, resistance to markets of BTC derivative instruments, infection from government risk and early signs of real estate crisis.

This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.