Bitcoin’s attempt to reach new heights beyond $126,000 was thwarted, resulting in a significant market correction. This unexpected downturn has instilled fear among investors as the anticipated continuation of the bull run failed to materialize, potentially signaling a shift towards bearish conditions.
By Shayan
The Daily Chart Analysis
On examining the daily chart, Bitcoin could not sustain its upward trajectory past $126K and sharply retreated to around $100K before experiencing a quick rebound. The failure at this all-time high zone and subsequent drop below the 100-day moving average indicate waning bullish momentum.
The crucial support level is now approximately at $100K, which coincides with both trendline support and the 200-day moving average. With an RSI near 41, there’s potential for further decline unless buyers re-enter soon.
The 4-Hour Chart Insights
In the shorter-term view on the 4-hour chart, Bitcoin found temporary relief around $110K following intense selling pressure. This area had previously acted as an accumulation point before recent gains and remains pivotal in the short term.
The RSI hovers weakly around 32, indicating limited buyer strength. Immediate resistance is seen near $117K where former support has turned into resistance; rejection here might lead to another dip towards approximately $105k—aligning with the lower boundary of a large ascending channel. Breaking this channel could spell an end for current bullish trends across cryptocurrencies.
Sentiment Overview
Long Liquidations (7-day Moving Average)
A review of liquidation data reveals an unprecedented surge in long liquidations coinciding with Bitcoin’s inability to achieve new highs—forcing overleveraged traders out while significantly decreasing open interest levels.
This type of liquidation event often signals short-term bottoms historically; however due to prevailing market uncertainty driven by fear-based sentiment among investors reluctant about aggressive re-entry—the likelihood remains that confidence within uptrend cycles may have diminished substantially unless prices stabilize above critical thresholds like $100K once more—a closure below which might herald this cycle’s conclusion regarding bullish markets overall within crypto spheres globally speaking…