- Bitcoin’s sharp price drop signals bearish dominance, with key support at $90,774.91 and resistance at $108,275.70 shaping trends.
- RSI’s dip below 50 suggests fading bullish momentum, while a trendline divergence hints at upcoming market volatility.
- Long-term LMACD trends show lower highs and extended cycles, aligning with Bitcoin’s maturing market and four-year halving patterns.
Bitcoin experienced a sharp price decline recently, dropping from $108,275.70 to $96,170.47 within a short timeframe. This downward movement was accompanied by heightened selling pressure and increased market volatility. Besides, the price reached a low of $90,774.91, reflecting intense sell-offs. These movements suggest that bearish sentiment has dominated recent trading sessions.
The Relative Strength Index (RSI) indicated strong momentum initially, with values remaining above overbought levels. However, a sharp RSI decline below the 50-mark signaled a loss of bullish strength. Additionally, a rising trendline in the RSI hinted at a possible bullish divergence. This trendline contrasts with the bearish price movement, indicating potential market volatility.
Recent Market Dynamics and Key Levels
Candlestick patterns reveal high volatility. A series of green candles transitioned into prominent red ones during the sell-off. The key resistance and support levels stand at $108,275.70 and $90,774.91, respectively. These levels could play a crucial role in determining Bitcoin’s near-term price direction.
Moreover, the breakdown of the RSI from overbought zones aligns with the steep price drop. The market appears to be in a correction phase. Any movement around the mentioned levels will likely determine the next phase of Bitcoin’s price action.
Long-Term Cycle Trends and LMACD Insights
Bitcoin’s long-term showcases cyclical trends marked by peaks in 2013, 2017, and 2021. Each peak represents a price high, followed by steep corrections. Moreover, the Logarithmic Moving Average Convergence Divergence (LMACD) indicator highlights waning bullish momentum over time.
The downward-sloping LMACD trendline connects cycle tops, reflecting consistent lower highs in market momentum. Besides, the histogram transitions from green to red after each peak, signaling bearish trends.
These transitions also show diminishing intensity, indicating reduced volatility as the market matures. The time intervals between peaks are lengthening, aligning with Bitcoin’s four-year halving cycle. Hence, the 2025 projection remains uncertain but suggests Bitcoin is in a late-cycle phase.
DISCLAIMER:
The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
