Bitcoin has recently broken below the key 200-day moving average of $83K, signaling a notable bearish trend in the market. However, it appears that the price is encountering a last line of defense at the $80K mark, where buyers are stepping in. A breakout below this level could lead to a significant decline towards the $75K region.
Technical Analysis
By Shayan
The Daily Chart
The recent rejection of Bitcoin at the $92K resistance level triggered a strong sell-off, leading to a breach of the crucial 200-day moving average at $83K and the 0.5 Fibonacci retracement level. This area was anticipated to provide substantial support; however, bearish pressure overwhelmed buyer interest, resulting in long liquidations and a shift in market sentiment.
At present, Bitcoin is testing the last defense line for buyers situated at the $80K region, which coincides with both the ascending channel’s lower boundary and the 0.618 Fibonacci retracement level. Should this support fail, an additional sell-off could propel prices toward $75K, marking a deeper market correction.
The 4-Hour Chart
On the lower timeframe, Bitcoin’s price is currently consolidating between the $80K and $92K range. The recent rejection at the upper end of this range highlights a period of market hesitation. A clear breakout from this zone is necessary to establish a definitive trend.
Moreover, there exists a liquidity pool just below the recent low of $78K, where numerous sell-stop orders have accumulated. This pool could serve as an attractive target for market players, raising the potential for a bearish breakout in the mid-term. Therefore, Bitcoin’s price action in the upcoming weeks is expected to remain volatile, with further consolidation likely before any decisive movement occurs.
On-chain Analysis
By Shayan
Historically, Bitcoin’s interaction with the Realized Price of 3-6 Month UTXOs has been pivotal in defining market direction. This metric often acts as a strong support or resistance zone, reflecting the average acquisition price of mid-term holders.
Currently, Bitcoin is at the realized price level for 3-6 month holders at $83K. If it holds above this zone, it would indicate robust market confidence and reinforce bullish sentiment, increasing the chances of further upside momentum.
Conversely, should Bitcoin fail to maintain support at this threshold and break below, it could signal a shift in sentiment towards fear. This scenario might trigger a distribution phase, where short to mid-term investors offload their holdings, potentially driving the price into a deeper correction while providing opportunities for smart money to accumulate at lower levels.
Thus, Bitcoin’s price action around the $83K level will be critical in determining its short- to mid-term trajectory. The path it takes—whether it rebounds or breaks down—will likely dictate the next major trend within the market.
The post Bitcoin Price Analysis: How Low Will BTC Drop This Week Following Loss of $80K originally appeared on CryptoPotato.
