Bitcoin Price Analysis: Is BTC’s Momentum Leaning Bearish After the Crash?
Bitcoin didn’t proceed its rally and uncover new all-time highs above $126,000, resulting in a pointy correction that has unsettled the market. Investors are displaying indicators of worry as the current drop invalidated the breakout momentum that many anticipated to increase the bull run, and the market is likely to be on the verge of a bearish shift.
By Shayan
The Daily Chart
On the every day timeframe, BTC didn’t proceed past $126K and has fallen sharply to the $100K space, earlier than rebounding rapidly. The rejection from the ATH zone, mixed with the breakdown under the 100-day shifting common, indicators a lack of bullish momentum.
The subsequent main help sits round the $100K vary, which additionally aligns with the trendline help and the 200-day shifting common. The RSI close to 41 means that whereas the market is cooling off, there’s nonetheless room for additional draw back if patrons don’t step in quickly.
The 4-Hour Chart
The 4-hour chart exhibits that BTC discovered short-term help round the $110K zone after the intense sell-off. This space beforehand served as an accumulation zone earlier than the final leg up, making it a crucial short-term stage.
The RSI stays weak round 32, displaying restricted energy from patrons. Immediate resistance lies round $117K, the place earlier help flipped into resistance. A rejection from this zone might set off one other leg down, probably towards the $105k area, which aligns with the decrease boundary of the massive ascending channel. A breakdown of this channel would probably finish the bull market, and Bitcoin would enter a long-term downtrend alongside the complete crypto market.
Sentiment Analysis
Long Liquidations (7-day MA)
The liquidation chart highlights an enormous spike in lengthy liquidations, the largest one ever, coinciding with Bitcoin’s failure to set a brand new high. This cascade has pressured overleveraged merchants out of the market and considerably diminished open curiosity.
Historically, such liquidation flushes usually mark short-term bottoms, however given the fragile sentiment, buyers stay hesitant to re-enter aggressively. The market’s fear-driven tone means that whereas a aid bounce is feasible, confidence in the uptrend has clearly weakened. This may very well be the starting of the finish for this cycle’s bullish market, particularly if the value closes under $100K.
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