Bitcoin is testing a critical demand zone after a sharp decline that has shaken investor confidence. The move comes just days after BTC traded near all-time highs, only to reverse and face aggressive selling pressure. Analysts remain divided — some see this as a temporary pullback within the broader uptrend, while others warn that the decline could deepen if support fails.

Adding to this cautious outlook is fresh data from CryptoQuant’s Derivative Market Power (DMP) index, which reflects the influence of derivatives activity on spot market movements. Over the past few days, DMP has bounced back from extremely low levels, signaling an important shift in market dynamics. After crashing to −559K, the index recovered to −420K, highlighting the strongest bear pressure recorded since April 2021

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