Bitcoin (BTC) Dips Below $85,000, Signaling a Gradual Decline in Bullish Momentum

Bitcoin has fallen below the $85,000 mark, signaling a gradual decline in bullish momentum. The leading cryptocurrency is down approximately 2% over the past 24 hours.

Bitcoin price fell below the $85,000 mark on March 21, showing a gradual decline in bullish momentum as the leading cryptocurrency slid nearly 2% in the past 24 hours.

Bitcoin is testing a long-standing resistance trendline. After hitting a 13-week high of $87,500 on March 20, BTC pulled back by 4.4% to around $84,000 at the time of writing.

This price action failed to sustain above the 23.60% Fibonacci level at $84,841. Also, Bitcoin is forming its second-highest price rejection candle, which could signal an extended pullback on the short-term charts.

Technical indicators are showing mixed signals. The MACD and signal lines crossed negatively, potentially signaling a sell-off.

On the 4-hour chart, Bitcoin’s pullback found support at the 50 EMA, which has prevented a sharper decline thus far.

However, the daily RSI is still slightly below 50. This indicates that bearish momentum could continue in the short term unless buying strength increases.

Liquidations in the crypto market are approaching $200 million over the last 24 hours. Long liquidations account for $131 million of this total.

Bitcoin’s open interest has decreased by 4.45%, reaching a low of $52.81 billion. The long-to-short ratio has shown a subtle increase in bearish positions, now standing at 0.9861.

Despite these bearish indicators, the funding rate continues to fluctuate. The open interest is currently at 0.0051%, reflecting some bullish sentiment toward long positions despite the extra premium being paid.

Market analysis platform Alphractal has reported an increase in bearish positions within the Bitcoin market.

According to their latest analysis, whales have shifted from locked positions to new open short contracts as Bitcoin breached the $87,000 mark in the short term.

"Whales have decided to close their long positions and open shorts as BTC surpassed $87k in the short term. Additionally, the Open Interest/Market Cap ratio is rising again, signaling increased market leverage. This could lead to new waves of volatility and potentially trigger mass liquidations if the price movements become too sharp."

The open interest-to-market cap ratio has spiked again. This signals an increase in market leverage, which could lead to new waves