Bitcoin Breaks One of the Important Trend Reversal Zones

Bitcoin breaks one of the important trend reversal zones, which has raised the possibility of a continued descending trend. The bulls are defending the support at $80,000

Bitcoin price analysis: BTC faces rejection at $83K as monthly candle set to close in red

Bitcoin price is about to close the monthly trade on a bearish note, which may hinder the progress of the rally. The technicals have turned bearish, while the trading activity has also dropped significantly, substantiating the bearish claim. However, the star token is flashing a major hidden bullish divergence and, hence, is believed to rebound and rise once validated. Therefore, each drop may be considered a good buying opportunity as the BTC price is primed to rise above the major resistance at $90,000 very soon.

The cryptocurrency market has seen a shift in momentum, with Bitcoin (BTC) failing to hold onto an important support level. This failure has activated a huge bearish activity, leading to the possibility of a continued descending trend.

As the cryptocurrency market continues to navigate a turbulent landscape, the recent price action of Bitcoin has been a subject of keen interest among traders and analysts alike. With the world's leading cryptocurrency failing to hold onto an important support and the bulls struggling to keep the rally afloat, the stage is set for an interesting analysis of the market trends.

As the cryptocurrency market continues to navigate a turbulent landscape, the recent price action of Bitcoin (BTC) has been a subject of keen interest among traders and analysts alike. With the world’s leading cryptocurrency failing to hold onto an important support and the bulls struggling to keep the rally afloat, the stage is set for an interesting analysis of the market trends.

Bitcoin price analysis: Bulls fail to defend $80K

The crypto market analysis by Zipmex strategists notes that the Bitcoin price failed to hold an important support, which has activated a huge bearish activity. Moreover, the bulls have been consistently failing to lift the rally above the ascending resistance, substantiating the bearish claim.

The price movements in the crypto market are closely watched by traders and analysts, who use technical indicators to identify trends and make predictions about future price movements. In the case of Bitcoin, the recent price action suggests that the bears may be able to continue pushing the price lower, despite the fact that the traders appear to remain confident about the future of the BTC price as they continue to accumulate, regardless of the persisting trend.

This is evident from the behavior of the long-term holder supply, which is still in the process of accumulation despite the recent price decline. As seen in the above chart, the long-term holder supply has rebounded and has begun to rise. Hence, this indicates that the traders are turning optimistic and, hence, continue to hold BTC despite the growing bearish influence over the token. This also suggests the probability of a potential supply squeeze.

On the other hand, the short-term price action suggests that the BTC price is facing huge upward pressure, which suggests more accumulation on the horizon.

As seen in the above chart, the BTC price dropped below the 200-day MA after losing the ascending trend line that it had held since September 2024. Besides, the volume has been dropping constantly, which has turned the technicals bearish. The bull market support band (BMSB) and MACD are heading towards a bearish crossover.

Hence, the current trade setup suggests the Bitcoin price may test the local support close to $81,000. If the Bulls manage to trigger a rebound, a rise beyond $83,000 could be possible; otherwise, a drop below $77,000 seems to be imminent.