Aniket Pujari
Bitcoin is struggling to push higher, showing signs of weak demand and potential rejection. If selling pressure increases, the $80K support level could be the next target in the coming days.
Technical Analysis
By Shayan
The Daily Chart
BTC’s recent bullish retracement has lost momentum after briefly surpassing the 200-day moving average at $85K, leading to a minor rejection. This price action suggests a potential false breakout and a bull trap, highlighting the presence of sellers.
The current retracement appears to be corrective, and if selling pressure intensifies, a drop toward the critical $80K support level could unfold in the short term. However, if unexpected buying pressure emerges, a breakout above this level could trigger a short squeeze, pushing Bitcoin to new highs.
The 4-Hour Chart
On the lower timeframe, Bitcoin continues its downtrend within a descending price channel, characterized by lower highs and lower lows, reinforcing a bearish market structure. Although BTC recently attempted a bullish retracement, momentum faded upon reaching the channel’s upper boundary at $88K, confirming strong resistance.
The rejection at this level has triggered renewed bearish pressure, increasing the likelihood of continued consolidation within the channel. In the short term, the $80K support, aligned with the channel’s mid-boundary, remains the primary downside target.
On-chain Analysis
By Shayan
Futures market sentiment has consistently offered valuable insights into Bitcoin’s price trends, with funding rates serving as a key indicator of market dominance. Recent data shows a decline in funding rates, nearing zero, signaling a shift toward seller dominance.
While this might seem bearish at first, it mirrors the market behavior seen in the summer of 2024, when Bitcoin underwent a prolonged correction before rallying strongly. This pattern suggests that BTC may have entered a deep consolidation phase, potentially lasting through the mid-to-long term before resuming its upward trajectory.
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Cryptocurrency charts by TradingView.
