The cryptocurrency market is abuzz with speculation as Bitcoin (BTC) breaks critical structural support, opening up the potential for a significant decline. With its Relative Strength Index (RSI) dipping below the pivotal 50 mark, concerns are mounting about an impending bearish trend.
Recent price charts reveal alarming momentum indicators that could catalyze further declines, signaling that Bitcoin might be caught in a broader bearish phase. A decisive plunge beneath the $86,000 to $88,000 range could see BTC plummet toward the $80,000 threshold. Traders are studying these patterns closely, as the implications could be significant for the crypto landscape.
Momentum Indicators Suggest Bearish Territory
Analyst Rekt Fencer has drawn attention to Bitcoin’s performance over the past two weeks, highlighting the failure of key supports following an impressive multi-year rally. This slip into bearish territory marks a major trend reversal, particularly as the RSI has now slipped into a zone that historically precedes further price declines.
The current RSI hovering near 40 indicates minimal support if selling pressure mounts, further backs predictions for potential downturns. Historical trends suggest that breaches below this pivotal level often lead to significant price retracements, with BTC now facing an increased risk of slipping toward the $50,000 mark.
BTC Remains Constrained by Descending Channel
Concurrently, a detailed analysis of the 12-hour futures chart indicates that Bitcoin’s price is entangled within a descending channel, restricting any upward momentum since its peak above $110,000 in October. Each attempt to break free has been thwarted by persistent sellers, with the latest rejection occurring around the $89,000 mark.
This descending pattern highlights a concerning trend of lower highs, calling into question the strength of any recovery efforts. Analysts note that a breakout below the $86,000 to $88,000 range could lead to liquidation-driven downturns, pushing Bitcoin further down.
Failure to Retest Signals Increased Downside Risk
Adding to the bearish narrative, the eight-hour chart from AlΞx Wacy indicates a failed retest of a critical ascending trendline. After briefly spiking into the $87,000 to $89,000 zone, Bitcoin was met with renewed resistance, confirming this area as new resistance rather than support.
This rejection, combined with increasing selling volumes, suggests a distribution rather than accumulation, further supporting projections of a decline toward $80,000. While some relief rallies might emerge amidst the current volatility, the prevailing momentum favors continued weakness unless Bitcoin decisively reclaims earlier resistance levels.
The convergence of weakening long-term momentum, short-term resistance, and recent retest failures places Bitcoin at a crossroads. Traders remain vigilant for signals indicating whether this correction may deepen into a sustained bearish phase or stabilize above critical support areas. Keep an eye on these developments as the BTC narrative evolves in the coming weeks.
