Key Points
- Bitcoin’s price continues to decline, indicating increased bearish pressure and a possible extended correction.
- Technical indicators such as the Death Cross and Fibonacci levels suggest further declines for Bitcoin.
Bitcoin’s [BTC] price has continued its downward trajectory, currently trading at $82,499. This follows a break below crucial support levels. The cryptocurrency is now facing increasing bearish pressure, with technical indicators suggesting a prolonged correction.
Well-known analyst Ali Charts has indicated that Bitcoin has witnessed a crossover between the 50-day and 100-day moving averages on the daily chart. This suggests continued shifts in momentum that traders should watch closely.
Death Cross Indicates Bearish Trend
A Death Cross, a well-known bearish signal, was confirmed in February when Bitcoin’s 50-period moving average (MA) fell below the 200-period MA on both the daily and 12-hour timeframes. Historically, this crossover has preceded extended periods of downward price action.
Bitcoin’s 50-period MA was $97,041 at press time, while the 200-period MA was at $91,631. This indicates strong resistance levels above the price. BTC has yet to show signs of reversing the trend, remaining below these key levels.
Fibonacci Levels Point to Further Declines
Bitcoin previously failed to sustain a move above the 50% Fibonacci retracement level at $85,723. It is now testing the 23.6% retracement level at $82,902, a key short-term support. A decisive break below this zone could lead to a deeper correction toward $80,380, which marks the 0% Fibonacci retracement from recent highs.
BTC’s most recent rejection near $88,181, aligning with the 61.8% Fibonacci level, suggests that bullish attempts have been weak, further validating the downward pressure.
The Relative Strength Index (RSI) was 40.70 at press time, showing weak momentum but not yet entering oversold conditions (<30). Previous RSI lows at 33.79 and 16.73 indicate that Bitcoin has historically experienced deeper corrections before significant rebounds. Volume analysis shows that selling activity spikes during downward moves, confirming a market driven by bearish sentiment. However, if Bitcoin experiences a volume decline during further price drops, it may indicate seller exhaustion, potentially setting up for a relief bounce. Bitcoin tested $82,902 at the time of writing, the 23.6% Fibonacci retracement level, which serves as immediate support. Holding above this level is crucial to prevent further downside. A breakdown below $82,902 could push Bitcoin toward $80,380, the 0% Fibonacci retracement level, marking a critical support zone. On the upside, Bitcoin faces strong resistance at $85,723, the 50% Fibonacci level. A decisive break above this resistance could shift momentum and allow Bitcoin to test $88,181, the 61.8% Fibonacci retracement level. However, if Bitcoin fails to reclaim $85,723, bearish pressure may persist, increasing the likelihood of further declines. Traders should watch price action closely at these levels for confirmation of trend continuation or reversal. With the Death Cross still in play and the 50/100-day moving average crossover noted by Ali Charts, BTC remains in a medium-term downtrend unless significant buying pressure emerges. Traders should monitor RSI levels and volume trends at key supports to gauge potential reversal signals.
