Bitcoin is currently hovering near the $80,000 mark after a significant 36% downturn from its October all-time high. This drop has sparked a massive wave of selling by short-term investors, potentially indicating a local bottom forming in this market cycle, despite long-term holders distributing their holdings at an unprecedented rate. This dynamic is creating a fragile balance, as increasing short-term buying activity around $87,000 attempts to counteract the selling pressure. Analysts highlight key on-chain signals suggesting a potential price correction. While some investors are cautiously optimistic about the possibility of a rebound, others express caution, citing historical trends and data analysis.