Bitcoin Hits Crucial Support Amid Bearish Trends
Bitcoin is currently trading around $87,800, having briefly dipped to $86,000, marking its lowest point in more than a month. In the last week, the asset has seen a decline of over 5%. In the past 24 hours, it has experienced a decline of nearly 1%. Crypto analyst reports that Bitcoin has finalized a five-wave bearish pattern according to reports, typically signaling the conclusion of a market movement. The analyst anticipates a brief uptick before any additional downturn occurs. The chart presented indicates a possible ABC correction in the making. This encompasses an increase (A), a decline (B), and a subsequent surge (C). If this scenario unfolds, Bitcoin may revisit a trendline established from earlier lows and potentially hit the $91,000 to $92,000 range. Junkie stated: “We may have a bit further down to go ($84k) until 5 waves finishes but if we haven’t reversed already, we will.”
A distinct perspective highlights the emergence of a bear flag on the weekly chart. This kind of configuration frequently emerges following a significant decline. A small upward channel is formed, succeeded by another drop. The analysis from the flag indicates a potential decline towards $60,000. This corresponds to a 31% decline from the recent range. Bitcoin has dipped below its 50-week simple moving average, currently sitting at approximately $101,000. The 200-week SMA, positioned around $57,800, could serve as the next support level should the downtrend persist.
Recent data indicates that Bitcoin’s NUPL is on a decline, yet it remains above zero. Historically, cycle bottoms have typically emerged only after this indicator shifted into negative territory. The current level indicates that full capitulation has yet to occur. Another key metric, Delta Growth Rate, has officially dipped into negative territory. This indicates that speculative buying has decelerated. A recent report indicates that an increasing number of holders are now liquidating their positions at a loss. This marks the first occasion in more than two years that profit margins have seen such a significant decline.
Bitcoin’s decline beneath $88,000 occurred amid escalating macro pressures. Concerns over a potential US government shutdown, coupled with the Federal Reserve’s upcoming rate decision, have led to increased caution among investors. The market is currently positioned at crucial support levels. A breach beneath this level could pave the path for declining prices. A bounce, however, may retest previous highs in the short term.
