Crypto Market Dip Worsens, But Key Metrics Show Potential Reversal for Bitcoin and Chainlink

The crypto market has continued to bleed this week, leading to liquidations of more than $1.6 billion. Even as the condition of the dip continues to worsen, the famous crypto analyst Tom Tucker has posted some key on-chain data that indicates that the Bitcoin price might experience a trend reversal in the near future.

The Bitcoin exchange reserves have dropped to fresh lows even as the price of BTC drops, suggesting that a market reset could be happening. Meanwhile, Chainlink (LINK) is showing a clear dominance of buyers with 34 million $LINK tokens flowing out of exchanges since January, suggesting that a short squeeze could push its price up soon.

Bitcoin Exchange Reserve Hints At Potential Market Reset

Bitcoin (BTC) prices have been plummeting sharply in the past seven days and have dropped over 10%. Owing to this decrease, the price of Bitcoin fell below $100k for the first time since June. Bitcoin has since regained above the $100k support, yet the market remains bearish.

Despite the current decline that Bitcoin is facing, Tom Tucker has shared a chart that shows that BTC could begin a reversal soon. According to a CryptoQuant chart shared by Tucker, the $BTC exchange reserves have dropped to a fresh low, as supply on exchanges keeps drying up. 

Tucker explained that historically, when supply keeps leaving exchanges while the price drops, it signals a market reset before the next leg of the bull market. In another post, Tucker said that the current dip to the $102k price level opens up an opportunity to accumulate Bitcoin.

Coin Bureau has shared an exciting trend that lines up with this prediction. Any time the Bitcoin price drops to its 50-week moving average (MA), there’s always a trend reversal that leads to BTC rallying to a new all-time high.

The price of Bitcoin shot up 99 percent in September 2024 to hit $109k. The Bitcoin price rose by +50% in April 2025 following its fall to this point and resulting in its ATH of $125k. With Bitcoin price now rebounding at this level, it could finally rally above $150k.

Chainlink Buying Momentum Rises Despite Market Dip

Following the trend of the crypto market, Chainlink (LINK) price has fallen by over 18 percent in the past one week. Even though the decline has brought the price of Chainlink to the $14 zone, according to the on-chain statistics, buyers continue to control the market.

CryptoQuant data shows that the Futures Taker CVD (90-day) of Chainlink is flashing a clear taker buy dominance, signaling rising trader confidence in an upside reversal.

To further strengthen the supply crunch, since the start of January, over 34 million $LINK tokens have left exchanges. With the on-chain data showing a massive supply squeeze, there could be a potential breakout for LINK. According to Ali_Charts, a bounce off at the current price level could send the price of LINK as high as $46. 

In Summary

Although the current market dip is a cause for alarm for some investors, on-chain metrics show that there could be a reversal soon for Bitcoin and Chainlink. If this happens, Bitcoin could soar to a new ATH, while the price of LINK could more than double if it soars to $46.