Bitcoin has come under selling pressure again after rebounding from a critical technical threshold. The price remaining below $90,000 strengthened the possibility of a deeper pullback in the market. Technical indicators point out that the decline creates a movement area that can extend up to 70 thousand dollars. Analysts emphasize that the current outlook is reminiscent of a rare and sharp weakening period seen in 2018.
Return from Critical Resistance and Increased Selling Pressure
Bitcoin has failed to break through the $94,000 to $98,000 range in recent weeks, and this area has acted as a strong resistance area. Rejection from this level, which is followed as a neckline in technical analysis, is considered an important signal confirming the downward trend. The failure to complete the head and shoulders formation and the subsequent bear flag break strengthened the technical basis of the downward movement.
While the price lost more than 6 percent in value in the last seven days, short-term reaction purchases could not provide a permanent recovery. Market participants are watching the $80,000, $75,000 and $70,000 levels as intermediate and main supports. Analyst Crypto Patel states that the current technical breakdown indicates a pullback of approximately 22 percent. The outlook remains negative unless the price settles and holds above $92,000 again.
High-volume liquidations in derivative markets also stood out among the factors that accelerated the decline. While sharp movements in foreign exchange and US bond interest rates in global markets suppressed risk appetite, crypto assets were directly affected by this wave. Investors are watching the upcoming US Federal Reserve decision and the balance sheets of major technology companies as critical headlines for short-term direction.
Technical Indicators and Warning Signals Similar to 2018
Market data shows that the 50-day simple moving average is forming a strong resistance near $90,000. According to Material Indicators, there is over $50 million in liquidity just above this level, making upside attempts difficult. The fact that the 21-day average is around $91,500 stands out as a factor that may create additional pressure in possible increases.
There is a possibility of a downward crossover between the 21-day and 50-day moving averages next month. Such a chart is considered one of the classic signals that reinforce the downtrend in technical analysis. BitBull, on the other hand, states that the price is at the decision stage at the “Active Investor Mean” level of around $ 87,500, and if this region is lost, $ 80,700 may come to the agenda.
The fact that the cost average for short-term investors is above 96 thousand dollars increases the selling pressure at the upper levels. Long-term investors, on the other hand, still make a profit thanks to their average costs of around 56 thousand dollars. As analyst Aman pointed out, Bitcoin is on the verge of experiencing its fourth red month in a row, and this picture was last seen in 2018. Market experts agree that strong evidence has yet to emerge that the current lows have established a definitive bottom.
