What lies ahead for Bitcoin? The collective sentiment has taken a turn.
On Myriad, a prediction platform developed by Dastan, the parent company of Decrypt, opinions have rapidly shifted in recent hours as Bitcoin’s value continues to decline. Currently, there is a 57% likelihood that Bitcoin will fall to $100,000 before it reaches $120,000. Just hours ago, predictions indicated a 57% chance that the opposite would occur.
A sudden and significant change in prediction markets warrants attention.
With BTC trading just below $108,000 after recently achieving an all-time high exceeding $125,000, it’s evident that Bitcoin is experiencing a short-term bearish trend.
The pressing question now is whether this represents a healthy correction of around 20%, paving the way for future gains or if we are witnessing the onset of something more severe. Over the past week alone, Bitcoin has dropped over 10%, testing critical levels that could dictate whether we revisit the psychologically significant $100K threshold or regain stability in the comfortable range around $120K where BTC lingered throughout much of summer.
Bitcoin (BTC) Price Analysis: Insights from Technical Charts
An examination of standard technical indicators utilized by traders reveals an intriguing current scenario.
The Relative Strength Index (RSI), which gauges market momentum—readings above 70 indicate overbought conditions while those below 30 suggest oversold status—has seen Bitcoin’s RSI plunge to just 37 points within the last day. This indicates oversold conditions but not at panic levels yet. Presently, traders appear predominantly short-term bearish; corroborated by a Fear and Greed Index reading at just 30 points firmly situated within “fear” territory.
Bitcoin price data. Image: Tradingview
The Average Directional Index (ADX), which assesses trend strength on a scale from zero to one hundred regardless of directionality—values above twenty-five typically confirm trends—is currently sitting at only 25.23 for Bitcoin; this barely validates any established trend and suggests that while there’s downward movement daily isn’t overwhelmingly strong long-term—it was sufficient enough to nearly negate recent bullish momentum seen with BTC’s previous trends.
This apparent weakness in trend strength can be misleading since shorter timeframes present an even grimmer outlook when analyzed closely through four-hour charts revealing stark bearish signals instead.
Bitcoin price data. Image: Tradingview
The RSI plummets further down to about thirty-two point seventy-four while ADX spikes up sharply reaching thirty-four point sixty-three—a clear indication of “strong trend” status now achieved here too! When shorter intervals display stronger readings than longer ones typically implies accelerating momentum rather than deceleration occurring presently!
A concerning detail emerges as well—the four-hour charts illustrate what’s known as “death cross.” Exponential moving averages help traders identify support/resistance levels across various timelines tracking these movements overtime spotting potential trends emerging therein!
