Bitcoin's market structure has shown significant signs of weakness as it faces continued selling pressure. After being rejected from the 120K-125K price range, the cryptocurrency has entered a bearish phase, raising concerns among investors about its future trajectory. The report expresses concern that this trend may lead to further declines if the selling pressure is not alleviated.
Recent Price Action Analysis
The recent price action indicates a shift from a sequence of higher highs to a pattern of lower highs, coupled with increasing downside volatility. This transition is a classic indicator of mid-cycle bearish phases, suggesting that sellers are firmly in control. The latest decline towards the 65K-70K zone reinforces this trend, as BTC has now fallen below both its short and medium-term moving averages.
Longer-Term Support Levels
The longer-term trend line, situated near the high-50K region, is now the last significant structural support for Bitcoin. Historically, when trading remains below the 50-week average, it often leads to extended periods of consolidation or deeper corrections, rather than quick recoveries. The 62K-65K range has emerged as a crucial demand zone; maintaining this level could help stabilize market sentiment and facilitate accumulation among investors.
Recent analysis highlighted a significant downturn in the Bitcoin market, indicating a deeper corrective phase that contrasts with the current bearish sentiment discussed in the latest report. For more details, see further insights.
