Bitcoin remains under significant selling pressure, continuing to set new local lows as the market struggles to find adequate support. The overarching trend has shifted downwards, with sellers dominating the action following a series of distribution phases at previous highs. Although signs of overselling are emerging, the absence of a notable drop in futures trading suggests ongoing downside risks.
Daily Chart Analysis
On the daily chart, Bitcoin (BTC) has decisively fallen below a long-held ascending channel, leading to accelerated price declines following a death cross formed by the 50-day and 200-day moving averages. Key support levels around $100K and $86K have been swiftly penetrated, with BTC now heading towards a demand zone between $76K and $85K. Despite the RSI entering oversold territory, there have been no major reversal candles or significant spikes in trading volume that typically accompany capitulation, implying that further declines may be probable.
Daily BTC Chart
4-Hour Chart Insights
Analyzing the 4-hour chart, BTC has confirmed a downward trend within a well-defined descending channel. The most recent drop below this range signals increasing seller momentum, although previous attempts at recovery have proven weak and fleeting, evidenced only by brief candle wicks. Any efforts to rebound towards the $85K mark may now encounter resistance, as this level has been breached downward. Currently, with the RSI near 20, the likelihood of further bearish momentum remains intact unless a significant volume-driven price recovery occurs.
4-Hour BTC Chart
Market Sentiment
Despite recent aggressive price declines, funding rates across various exchanges remain predominantly positive. This discrepancy indicates that a considerable number of traders are still holding long positions, potentially waiting for a price bounce. This divergence is crucial as the market has not yet undergone complete liquidation or a capitulation event—a true Bitcoin market bottom typically coincides with negative funding rates and a surge in liquidations. Until this occurs, persistent downside pressure is likely, with any upward corrections potentially leading to further selling.
Funding Rates for Bitcoin
Disclaimer: Information shared in this article is based on the viewpoints of the mentioned analysts and does not constitute investment advice.
