Bitcoin's price attempts stabilization after a correction from the $92K level, testing support at $80K. It's crucial to overcome key resistance for further growth.
The Daily Chart
On the daily chart, Bitcoin is trading just below its 200-day moving average after a recent breakdown from the $88K level. Support was found near $80K, aligning with previous demand zones. However, the 200-day moving average around $87K acts as dynamic resistance. The RSI remains below 50%, indicating some recovery but lacking strong bullish divergence. Unless BTC reclaims the $92K level, the broader trend stays sideways-to-bearish in the short term.
The 4-Hour Chart
The 4-hour chart shows BTC breaking down from a rising wedge formation, leading to a dump from $89K to $80K. After forming a short-term bottom, the asset rebounded to retest the $84K–$85K region. The RSI has recovered from oversold conditions and hints at a potential move higher if momentum continues. However, clearing the previous wedge support turned resistance and holding above $86K is crucial for another run toward $92K. Failure to do so could result in another leg lower, potentially revisiting $80K or even the $75K zone.
On-Chain Analysis
Bitcoin’s Short-Term Holder SOPR has dropped below one again, indicating that many recent buyers are realizing losses. This signals weak short-term conviction and adds pressure to any rally attempts. Historically, SOPR values below one during a downtrend reflect capitulation among short-term holders and are seen near local bottoms, but only when followed by a decisive price bounce. Currently, this reinforces the idea that bullish momentum lacks strength unless accompanied by broader demand and sentiment shift. Therefore, investors should watch for SOPR to flip above one as a potential signal for a healthier recovery.
For Bitcoin to resume its bullish trend, it must overcome key resistance levels and demonstrate sustained recovery amid market demand and improved sentiment. Further decline is possible if crucial marks aren't broken.
