Bitcoin has recently experienced notable volatility, marked by a significant sell-off attributed to "weak hands" exiting the market. This phenomenon, where short-term investors sell their holdings at a loss, has sparked debate about whether Bitcoin will experience further price declines, potentially dipping below the $100,000 mark.

Recent data indicates a substantial sell-off, with one report noting that 79.3K BTC were sold at a loss in a single day, representing the largest Bitcoin sell-off of 2025. This surge in selling pressure highlights the level of panic among short-term holders. Such large-scale sell-offs historically signal either a market bottom as weak hands capitulate or the beginning of a more extended bearish phase.

However, it's important to note that such corrections can be viewed as a "healthy reset," pushing out weaker participants and paving the way for a new growth cycle. These shakeouts can eliminate speculative leverage and create a more stable foundation for future price appreciation. Some analysts suggest that the recent turmoil has led to a market detox, where weaker participants have exited, leaving stronger hands to support the price.

Despite the recent price drops, several factors suggest potential for recovery and continued growth. Bitcoin's Realized Cap has reached an all-time high, indicating a substantial volume of Bitcoin has recently transacted at higher prices, suggesting sustained investor confidence and accumulation. The number of new Bitcoin addresses is also on an upward trend, indicating that new investors are entering the market. Moreover, institutional interest remains robust, with spot Bitcoin ETFs seeing significant inflows.

Several sources provide Bitcoin price predictions for the remainder of 2025, with many remaining bullish. Some forecasts suggest Bitcoin could reach between $130,000 and $150,000 by the end of 2025, assuming favorable global liquidity and regulatory clarity. More optimistic forecasts suggest that Bitcoin could reach as high as $221,485 by the end of 2025.

Currently, Bitcoin is trading around $104,700, and is finding support near its 50-day Exponential Moving Average (EMA). A decisive break below this level could trigger a sharp correction, potentially leading to a retest of the $100,000 level. Conversely, if Bitcoin can maintain its position above the 50-day EMA and break above the resistance level of $112,000, it could set the stage for a rally towards $120,000 or higher.