Bitcoin may be entering the final phase of its corrective cycle as higher-timeframe technical signals align with weakening daily structure.
BTC continues to be the leader in digital assets and is currently building a foundation for future trades. Institutional and retail traders globally, both bullish and bearish, are using macroeconomic factors to establish their trading strategies.
Thus, technical indicators are now showing the potential for a historically rare moving average crossover. At press time, the coin is trading at $66,212.25 with a decrease of 2.39% over the past 24 hours.
Bears Still Hold the Upper Hand
Based on the TradingView data, the current price of BTC ($66,840) is very close to where it was prior to being rejected at the first level of resistance ($75,046). This means that short-term movement for BTC shows lower lows and lower highs, and that the overall downward trend does not have the strong upward momentum that it once had in March/April.
Bitcoin has recently rejected the $75,000 resistance, which will likely lead to a bearish price structure by creating lower lows and lower highs in momentum. The support level (flat – between $60,000) has provided strong support and is currently being used as a major demand area.
Price action volume was seen to accelerate during the most recent downward price activity, which indicates that the downward price direction resulted from trader distribution, not simply from position correction.
Additionally, RSI (14) is currently at approximately 34, demonstrating weak momentum conditions. If the next support level ($60,000) is broken, BTC will likely continue moving down toward the next available liquidity pool. Conversely, if BTC is able to break above $75,000, the primary bearish narrative can be discounted.
Also Read: Missouri House Bill 2080 Targets Five-Year Bitcoin Holding Rule
Analyst Points To A Death Cross warning
According to the recent post on X by Ali Charts, every occurrence of a three-day death cross of the 50/200 simple moving averages has led to the final leg of Bitcoin’s price downtrends during past BTC bear markets.
While moving averages are lagging indicators, they have historically proven to be reliable determinants of the long-term price evolution characteristics associated with the BTC cycle.
Therefore, there has been a significant increase in the number of traders looking to study how this (current) configuration’s results would identify whether there’s capitulation or whether they’re simply noise of a late-stage cycle.
In conclusion, Bitcoin has reached a critical point in its technical position. If we see historical patterns repeat, we could see a large increase in volatility before a macro low is reached.
Therefore, the upcoming weeks will be very important to see how Bitcoin performs in relation to the overall trend.
Also Read: Bitcoin’s (BTC) Brutal $3,000 Crash Sparks Extreme Fear