Bitcoin (BTC) Has Lost Crucial Support Levels

Bitcoin has lost crucial support levels as the market struggles to find demand, allowing bears to gain momentum.

In a bleak outlook for Bitcoin, fear is now setting in across the market as crucial support levels are lost and bears gain momentum. With uncertainty in the broader financial markets also rising, analysts are calling for further corrections from Bitcoin.

Bitcoin has dropped over 28% from its late January highs, and concerns are growing that bears could take prices even lower in the coming weeks. However, data from CryptoQuant reveals BTC currently has an 80% correlation with the S&P 500 index.

This suggests that any movement in traditional markets could heavily influence Bitcoin’s next move, with macro factors like interest rate expectations and stock market trends being closely followed. While some analysts believe BTC could stabilize around current levels, others warn the ongoing downtrend could continue.

Bitcoin could move into lower demand zones if bulls fail to regain control, and the next few days will be critical. Bitcoin’s ability to hold key levels or break lower could define its short-term and long-term trajectory in this volatile market environment.

Bitcoin Faces Further Risks

Bitcoin is massively down as fear now sets in across the market amid rising risks of further declines. The situation isn’t pretty, especially with the U.S. stock market also struggling to confirm an uptrend amid growing economic uncertainty.

Over the past few weeks, volatility and uncertainty have increased, especially as Trump’s policies come into play, impacting both traditional and digital asset markets. Now, top analyst Axel Adler shares an analysis on X, revealing the S&P 500 is likely to pull back another 5%.

This is according to the macro reports he read, and it’s crucial because Bitcoin currently has an 80% correlation with the index. Any further downside in traditional markets could directly impact BTC’s price action.

If Adler’s prediction is accurate, then Bitcoin is likely to continue its price drops, potentially moving into lower demand levels as the macro trends aren’t favorable for a swift recovery.

The next few weeks will be crucial as Bitcoin struggles to find strong support. With macro uncertainty rising and investors remaining fearful, BTC must hold above key demand zones to avoid an extended bearish phase.

If stocks recover, then BTC could follow, but if the S&P 500 pulls back further, then BTC could see even more downside before finding stability.