Bitcoin (BTC) Drops Below Crucial Support Levels After Massive Selling Pressure

Bitcoin (BTC) is trading below crucial support levels after massive selling pressure swept through the market. Since late January, BTC has lost over 29% of its value, fueling fear and uncertainty among investors.

Bitcoin price is struggling to stay above crucial support levels as massive selling pressure continues to sweep through the market. Since late January, BTC has lost over 29% of its value, fueling fear and uncertainty among investors.

As global trade war fears intensify and volatile macroeconomic conditions shake the crypto and U.S. stock markets, traders are bracing for further downside risk.

Bitcoin Bounces Off 200-Day MA After Striking Key Resistance

Market sentiment remains overwhelmingly bearish as Bitcoin fails to hold key technical levels. Crypto analyst Daan shared a technical analysis on X, revealing that BTC has broken below the Daily 200-Moving Average (MA) and has now retested it as resistance.

According to the analyst, this pattern usually signals a continuation of the same price trend, which in this case, is bearish.

“This is the 4th time in history that Bitcoin closed the 200-day MA (now EMA) over 200 days ago and later tested it again from below. In the previous three instances, it led to a continuation of the same price trend,” Daan explained.

With Bitcoin struggling to regain momentum, the next major move will depend on whether bulls can reclaim lost ground or if further selling pressure will drive BTC toward lower support levels.

As uncertainty grows, investors remain cautious, waiting for clear signals before making significant moves. The coming days will be crucial in determining whether Bitcoin can stabilize or if the current downtrend will continue.

Bitcoin Remains In Downtrend As Fear Deepens

Bitcoin has been in a persistent downtrend since late January, with fear continuing to set lower price targets among investors. Many are now wondering if the BTC bull cycle is over, as selling pressure intensifies and market sentiment turns increasingly bearish.

The uncertainty surrounding macroeconomic conditions has fueled this decline, with volatility increasing since the U.S. elections in November 2024. Given the ongoing trade war fears and unstable global markets, it seems that this period of uncertainty will continue to weigh on Bitcoin's price action.

Crypto analyst Daan recently shared technical insights on X, highlighting that BTC lost the 200-day moving average (MA) and has now retested it as resistance. This signals that bears remain in control, and bulls have a lot of work to do to reclaim this level.

According to Daan, Bitcoin experienced a similar scenario last year, where price action chopped around these levels for over three months before breaking out. If history repeats itself, BTC could be entering another extended consolidation phase, keeping prices range-bound for months.

However, if bulls fail to reclaim the 200-day MA/EMA, further downside could follow, bringing Bitcoin to even lower price levels. With bears still in control, the market remains highly fragile, and investors are watching closely to see whether BTC can stabilize or if another major drop is on the horizon. The next few weeks will be critical as Bitcoin either finds a foothold or continues deeper into bearish territory.