The Bitcoin price has turned bearish after reaching a new all-time high above $111,000 back in May. This shift in market sentiment was anticipated, as rally placed Bitcoin holders in significant profit, creating an environment ripe for profit-taking that could depress the price. Currently, Bitcoin is down approximately 6% from its all-time high, trending at $104,000 as of this writing. As bearish forces gain traction, it is plausible that the decline may persist, potentially dropping the cryptocurrency below the six-figure mark once again.
The Pathology Of The Bitcoin All-Time High
A pseudonymous analyst known as Youriverse on TradingView has elucidated the recent movements in Bitcoin’s price and the factors driving current market trends. He explains that Bitcoin has been undergoing what can be described as a textbook accumulation since the uptrend initiated in the second week of May, which contributed to the rally that led to new all-time highs.
At this point, the move towards higher price levels was met with increased compression; Bitcoin recorded higher lows while resistance remained somewhat stable. Additionally, the substantial selling pressure that had impacted Bitcoin’s price in recent months due to external factors, such as the Donald Trump tariff wars, has subsided, leading to a resurgence in buyer control. This situation aligns with the concept of ‘Power of 3’, which comprises Accumulation, Manipulation, and Distribution.
Together, these phases were instrumental in propelling Bitcoin to a new all-time high. However, as momentum diminished, a reversal became inevitable. Consequently, the Bitcoin price faced a decline toward previous support levels at $106,000. Regrettably, this support has failed to hold, indicating a significant shift in market structure.
Why A Decline To $92,000 Is Possible
The analyst further articulated that the ‘Power of 3’ might currently be in a critical phase, suggesting that this regression could see the price fall further, particularly as larger institutional investors may offload their assets onto less-informed retail investors. Moreover, as Bitcoin continues to languish below the $106,000 support level, the likelihood of deeper retracements increases. As the analyst stated, “the rejection above the ATH and the subsequent breakdown below $106K has introduced significant overhead supply, which may act as resistance in the near term.”
In light of this assessment, he posits that Bitcoin could ultimately trend back toward $100,000, potentially reaching the mid-$90,000 range. However, should such a decline occur, it may not necessarily herald a bearish trend; instead, it could represent a buying opportunity, as this price level might attract liquidity and serve as a springboard for another rally. “This potential pullback should not be perceived solely as a sign of weakness,” he noted. “In many bull cycles, such corrections and shakeouts serve to cleanse over-leveraged positions and reset market sentiment, ultimately paving the way for renewed upward momentum.”
