Bitcoin is showing signs of a rounding top pattern, causing a 6.4% decline in the last 24 hours with BTC hitting a low of $90,000, sparking panic among investors.

Despite the initial market reaction, there is optimism among some experts that this downturn might be short-lived.

Recent data shows a surge in Bitcoin deposits on exchanges, surpassing 80,000 BTC valued at around $7.5 billion. While this could hint at impending selling pressure, it might as well be a result of panic selling rather than a shift in long-term market sentiment. Investors often move assets to exchanges during uncertain times, but it's not necessarily a sign of a prolonged bearish trend.

Coin Days Destroyed (CDD), a metric tracking the movement of long-term holders' coins, reveals interesting insights into market sentiment. Despite the sharp drop in Bitcoin's price, long-term holders have shown little activity, indicating their confidence in a potential recovery. This resilience implies that the current volatility may not shake their faith, suggesting that the market might be experiencing only a temporary setback.

Bitcoin's recent price movement forms a rounding top pattern, but there's a possibility of it transitioning into an inverse cup and handle pattern. The current bearish momentum is not overly strong, giving Bitcoin a chance to rebound from the $93,625 support level. A successful bounce could propel Bitcoin above $100,000, signifying a crucial recovery and restoring investor confidence.

However, failure to break above key resistances might push Bitcoin down to $92,005 in the short term. Breaking past $100,000, and turning it into a support level, could negate the bearish scenario, potentially leading to a surge towards $105,000, marking a significant rebound from recent losses.