Bitcoin (BTC) recently experienced a decline, dropping to just under $98,000, marking a near 10% drop from its all-time high, which has raised questions about whether the current bull market can continue.

The dip is being partly attributed to concerns about China’s DeepSeek AI, which poses a potential threat to the U.S. tech industry by offering hyper-efficiency at a fraction of the cost. Since President Donald Trump’s election win, Bitcoin has surged from $66,000 to a new record of $109,000. During this rally, Bitcoin has already experienced two significant 15% corrections, as well as other smaller drawdowns, making this latest fall consistent with previous market behavior.

A critical support indicator during bull markets is the short-term holder cost basis. This figure, which represents the average price of Bitcoin held by those who have moved coins within the last 155 days, is currently around $91,000. If Bitcoin dips below this threshold, it could signal a shift in the market, testing the sustainability of the bullish trend.

Bearish sentiment is also beginning to surface, as Bitcoin’s funding rates have shifted negative. Some market experts, including Arthur Hayes, co-founder of Bitmex, forecast a potential pullback to the $70,000-$75,000 range before Bitcoin could make a rally to $250,000. Additionally, CoinDesk’s Omkar Godbole has indicated that a “double top” bearish reversal pattern might lead to a decline towards $75,000.

This broader market weakness isn’t limited to cryptocurrencies; U.S. stock markets are also showing signs of stress, with Nasdaq futures dropping by up to 4%, reflecting a more cautious investor outlook.