Bitcoin Faces Potential Drop Below $44,000 as On-Chain Signals Flash Warning

Bitcoin is facing significant downward pressure as on-chain metrics indicate a potential breach of the $44,000 support level. Recent data reveals 'excess loss-realization' among traders, a technical signal that has historically preceded sharp market corrections in the crypto space. Analysts note that similar patterns were observed in 2022 and 2018, leading to substantial price drops of 25% and 50%, respectively. This trend suggests a possible capitulation phase or a critical lack of buyer support at current price points. If these support levels fail to hold, the market could see a significant near-term correction across major pairs like BTC/USD. Investors are closely monitoring these developments as the 'excess loss' signal often marks the beginning of a deeper bearish cycle.