March 2025 began bullish for the cryptocurrency market, but its close marked a significant price drop. Bitcoin is under considerable pressure and is posed for a potential further decline.
Bitcoin Technical Analysis
Between late February and early March 2025, Bitcoin witnessed substantial upside momentum while forming a bearish rising price action pattern in the daily timeframe. The BTC price has now broken out of the pattern, partially confirming the bearish outlook and opening the path for further decline. If BTC continues to fall and closes a four-hour candle below the $83,500 mark, it may decline to $78,500.
Current Price Momentum
Bitcoin is currently trading near $83,850, representing a 4% decline in the past 24 hours. At the same time, trading volume surged by 25%, indicating increased activity among traders and investors compared to the previous day.
Traders Bearish Outlook
Amidst the bearish market trend and continuous price decline, traders are heavily betting on the short side. According to on-chain data from Coinglass, traders are heavily leveraged at $86,000, with short positions totaling $1.26 billion. Meanwhile, the $83,500 level is another heavily leveraged spot with $345 million worth of long positions that may be liquidated if BTC crosses below this level.
The price crash in the cryptocurrency market poses a challenge for investors and traders, with Bitcoin remaining the focal point for all market participants. Technical analysis and current data point towards a persistent negative sentiment in the market.
