Bitcoin News Today: Bitcoin Bulls Face Crucial Test as Technical Signals Turn Bearish

Bitcoin's price has recently broken below a key multiyear support trendline, raising concerns among traders and analysts that this could signal the beginning of a more pronounced correction. The support level, which had been intact for a significant period, was breached amid a lack of significant buying interest at higher levels, according to multiple market observers. Technical indicators suggest that the move could lead to further downward pressure on the cryptocurrency, although it does not necessarily indicate the start of a bear market [1].

The price of Bitcoin (BTC) has been consolidating near the $110,000 mark, with trading activity confined to a narrow range. This has led to speculation among traders about whether the current bull cycle has entered a lull following a 700% surge from the lows observed in late 2022. The cryptocurrency reached a record high of approximately $124,500 earlier this year before momentum began to wane. Analysts have noted a number of bearish signals, including a bearish divergence in the Relative Strength Index (RSI), a MACD crossover, and a potential breakdown if the $108,700 support level is lost [2].

On-chain data also contributes to the bearish narrative. The MVRV Momentum indicator recently turned negative for the first time in this cycle, marking what some analysts describe as a potential macro-level reversal in momentum. Key downside targets identified by market analysts include $108,700, $104,500, and $97,000. Should the sell-off intensify, $60,000 could represent a deeper level of support. Analyst Ali Martinez emphasized that, for bulls to remain in control, Bitcoin must hold the $108,700 level and see a recovery in the MVRV indicator with a golden cross. Without such confirmation, the risk of a broader market correction increases [2].

Despite the bearish signals, not all analysts agree that the peak has already been reached. Some suggest that a decisive break below key support levels could trigger a sharp pullback but not necessarily mark the end of the bull market. For instance, if the current support levels are breached, some analysts believe the price could drop to as low as $80,000 by the end of 2025. However, they caution that this does not automatically equate to the start of a bear market and that market conditions could stabilize before such a scenario unfolds [1].

The current market dynamics reflect a tug-of-war between bulls and bears, with both sides monitoring key price levels and technical indicators for signs of direction. Bitcoin’s supply in profit is showing early signs of a downtrend, reinforcing the view that a top may already be in place. Additionally, a "death cross" in the MVRV Momentum indicator—where the short-term average falls below the long-term average—has been highlighted as a shift from positive to negative macro momentum. These factors have led to a more cautious stance among traders, with many waiting for further signals before making significant moves [2].

As the market continues to consolidate and test key levels, investors are advised to remain vigilant and monitor both price action and on-chain data. The next critical test will be whether Bitcoin can hold the $108,700 level or if it will be pushed lower, potentially triggering a broader correction. Until more clarity is provided, the market remains in a state of flux, with both sides of the argument having strong technical and on-chain support.

Source:

[1] Bitcoin price loses key multiyear support trendline (https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96732359/bitcoin-price-loses-key-multiyear-support-trendlin)

[2] Bitcoin Bull Market 'Falls Asleep' After 700% Run, Analyst Warns (https://www.benzinga.com/crypto/cryptocurrency/25/08/47411904/bitcoin-bull-market-falls-asleep-after-700-run-analyst-warns)