The crypto market has been facing a downturn for several days. Bitcoin's price has dropped from $88k to $82k, and altcoins are bleeding between 10-25%.
Reasons for Bitcoin's Decline
Bitcoin's recent price action has been disappointing for bulls. Multiple technical indicators suggest more downside could be coming. The previously hopeful bullish divergence on the daily RSI has been invalidated, removing a key signal for recovery. Bitcoin faced repeated rejections at the $88K resistance zone and the descending trendline near $86K-$87K. The weekly MACD remains bearish, favoring sellers rather than buyers.
Altcoin Market Situation
Ethereum has broken below a multi-year trendline, signaling major bearish pressure. If the breakdown continues, Ethereum could find short-term support around $1750, but a deeper correction might target the $1520-$1540 range. Solana faces similar challenges with weakening buying pressure. XRP shows ongoing bearish divergence but might have a short-term relief bounce. Chainlink has been rejected from the $14.90-$15.50 range, indicating a loss of upward momentum. Overall market sentiment remains bearish or range-bound.
Expectations and Conclusions
Overall market sentiment remains bearish. Bullish divergences have already exhausted themselves, becoming less reliable as trading signals. Momentum continues to weaken across most cryptocurrencies, and price action lacks the strong bullish conviction needed to reverse the current downtrend. Traders should remain cautious and consider the possibility of further downside before taking aggressive market positions.
The current situation in the crypto market remains challenging, and investors should consider all potential downside risks. Technical indicators suggest a continued downward trend.
