Bitcoin is currently grappling with a crucial support region at the $80K mark, with sellers attempting to breach it. A breakdown could lead the asset to target the critical $75K level.
Technical Analysis
By Shayan
The Daily Chart
Bitcoin sellers have been struggling to maintain significant support at the $80K price range, aligning with both the lower boundary of the ascending channel and the 0.618 Fibonacci level. The convergence of these support regions forms a strong demand zone, which could potentially halt further declines and support the price.
However, should the bearish momentum intensify and sellers succeed in pushing below this decisive level, a drop toward the $75K mark becomes increasingly plausible. Presently, Bitcoin is trading within a tight range between $80K and $85K, and an impending breakout will offer a clearer outlook on the next movement.
The 4-Hour Chart
In the shorter timeframe, after dipping below the recent market low of $78K and triggering a liquidity hunt, Bitcoin entered a phase of consolidation, showing slight volatility. The Relative Strength Index (RSI) indicates a bullish divergence, suggesting that bearish momentum is waning and a retracement towards the upper boundary of the descending wedge at $85K is possible. In the short term, Bitcoin is expected to remain in this consolidation phase until a decisive breakout determines the next trend.
On-chain Analysis
By Shayan
Analyzing futures market sentiment has consistently provided valuable insights into Bitcoin’s price trends. A crucial indicator in this analysis is the funding rates metric, which reflects the dominance of buyers or sellers in the futures market.
The chart indicates that funding rates have been declining and even turning negative, signaling that sellers are aggressively entering leveraged short positions. While this pattern may initially seem bearish, it mirrors market behavior observed in the summer of 2024, when Bitcoin underwent a prolonged corrective phase before experiencing a substantial rally.
This suggests that the market may be entering a deep consolidation stage, potentially persisting in the mid-to-long term before resuming its upward trajectory.
The post Bitcoin Price Analysis: BTC Risks Falling to $75K if This Resistance Breaks appeared first on CryptoPotato.
