Key Points
- Bitcoin’s weekly session closed under $92k, indicating a bearish bias.
- Analysts predict further downside, with a potential drop to $70k.
The weekly session for Bitcoin (BTC) ended considerably below the $92k mark, suggesting a bearish trend.
A key bearish target was identified in the liquidation heatmap, potentially indicating the bottom of the current downtrend.
Bitcoin’s Bearish Trend
Bitcoin’s price was in a downward spiral. The $92k level, which was the lower limit of BTC’s trading range from late November to late February, was tested again as resistance.
The bulls faced rejection last weekend, confirming the bearish trend.
There was on-chain evidence of distribution among long-term holders since the $60k level was breached. According to analyst Axel Adler, the intensity of this distribution has decreased.
Momentum and Volume Indicate Further Downside
The weekly session closed at $80.7k, just above the 50% retracement level at $79.3k. The significant losses following the repeated tests of the $92k support from December to February suggested bullish exhaustion.
The $72k region was the next target, with both the MACD and OBV indicating strong bearish pressure.
There is a possibility that BTC might bounce higher to gather the liquidity around $87k. However, any further gains seem unlikely. If such a bounce occurred, it would likely be followed by a price drop toward the $70k area.
The Fibonacci levels, based on the move from $49k to $109.6k (August to January), showed that the price was just above the 50% retracement level. This was another indication that a short-term price bounce was possible.
The 3-month liquidation heatmap indicated that the closest magnetic zones were at $100k and $72k. The southward liquidity cluster began at $76.8k, hence the $72k-$76k region was a potential candidate for a bullish reversal.
Until then, swing traders are advised to maintain a bearish outlook. The market-wide sentiment was strongly bearish. Investors are suggested to wait for BTC’s reaction at $72k to determine if their bias should shift bullishly.
Please note: The information provided does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.