Bitcoin Drops 1.10% As Bearish Momentum Builds

Bitcoin has been experiencing a period of consolidation, with the cryptocurrency trading at around $83,000 after several days of tight trading between the $81,000 support level. This consolidation comes after a notable price decline of over 1.10% in the past 24 hours, with Bitcoin currently trading near the $82,500 level. The bearish momentum has been building across all timeframes, with the price making lower highs and lower lows, indicating a bearish market condition. This trend is further supported by the recent break below the key $80,300 support level, which has led to increasing sell volume on the 4-hour chart.

The bearish momentum is not limited to the short term, as the daily Bitcoin chart has also shown a break through its downtrend line from March 2024. This breakout, however, did not come with the expected bullish momentum, as the price has continued to decline. The resistance zone around $84,067 has also been tested, but the price has failed to break above this level, further confirming the bearish trend.

Despite the bearish momentum, some analysts have predicted that if Bitcoin breaks above the $86,000 resistance line, it could spark a rally toward $90,000 or higher. However, this prediction seems unlikely given the current market conditions, as the price has been consistently making lower highs and lower lows. The bearish momentum is expected to continue in the near term, with the price potentially testing lower support levels.

The bearish trend in Bitcoin is not unique, as other cryptocurrencies have also been experiencing similar market conditions. For example, the histogram for XRP has been shrinking, showing that bearish momentum is weakening. However, this does not necessarily indicate a reversal in the bearish trend, as the price has continued to decline. The potential for a bullish crossover in the next 1–2 days has been noted, but this remains to be seen.

In conclusion, the bearish momentum in Bitcoin is building across all timeframes, with the price making lower highs and lower lows. The recent break below the key $80,300 support level and the failure to break above the $84,067 resistance zone have further confirmed the bearish trend. While some analysts have predicted a potential rally toward $90,000, this seems unlikely given the current market conditions. The bearish trend is expected to continue in the near term, with the price potentially testing lower support levels.