- Bitcoin was trading below the 50-day and 200-day Moving Averages, signaling bearish momentum unless it reclaims key levels.
- A confirmed breakdown of the Head and Shoulders pattern could see BTC drop toward $85,000.
Bitcoin’s[BTC] price action remains a focal point of discussion in the crypto space, with MicroStrategy’s Michael Saylor continuing to advocate for BTC as a long-term investment.
However, recent market movements suggest a period of uncertainty, leaving traders questioning the cryptocurrency’s next major move.
A technical analysis of Bitcoin’s price action sheds light on potential outcomes.
Bitcoin’s buying and selling pressure: A historical perspective
According to a recent post from Michael Saylor, buying Bitcoin strengthened the network, while selling it weakened it.
Historically, surges in buying and selling pressure have been crucial in shaping Bitcoin’s trajectory.
A prime example was Tesla’s $1.5 billion Bitcoin purchase in early 2021, which triggered a rapid price surge. Conversely, heavy sell-offs by miners in 2014 contributed to a steep decline below $200.
More recently, Bitcoin has faced both buying and selling pressure. Market sentiment has fluctuated amid regulatory concerns, institutional accumulation, and macroeconomic uncertainty.
The latest price movements indicate that BTC is consolidating, but a breakout could be imminent.
Bitcoin price analysis: Key levels and market structure
At press time, BTC was trading at $96,163, reflecting a 0.05% increase over the last 24 hours. The daily range showed a high of $96,644 and a low of $95,811, indicating mild price fluctuations.
The chart below highlights a Head and Shoulders pattern, a classic bearish reversal indicator.
Source: TradingView
The left shoulder formed during Bitcoin’s initial rally, followed by a peak at the head and a lower high at the right shoulder.
As indicated on the chart, a breakdown below the neckline could lead to further losses, with the target level around $85,000.
Moving Averages and Bollinger Bands suggests…
At the time of writing, Bitcoin traded below the 50-day ($99,541) and 200-day ($97,356) Moving Averages (MA), signaling a potential downtrend. The death cross between these two MAs suggests that momentum favors the bears unless BTC can reclaim these levels.
Bollinger Bands revealed that BTC was trading near the lower band ($96,850), indicating increased volatility. A squeeze in the bands suggests an impending breakout, though the direction remains uncertain.
The Bull-Bear Power (BBP) indicator was at -1,433.49, highlighting weakening bullish momentum. If this metric remains negative, BTC could face additional selling pressure in the near term.
Bitcoin’s next move
Bitcoin’s next move hinges on key resistance and support levels. A break above $100,000 could reignite bullish momentum. Failure to hold $95,000 may lead to a deeper correction.
Michael Saylor remains confident in Bitcoin’s long-term value, emphasizing its role as a hedge against inflation. However, short-term traders must navigate a volatile market. Technical indicators suggest both upside and downside risks.
Bitcoin’s current price action presents a mixed outlook. While Michael Saylor champions BTC’s long-term potential, short-term traders must consider technical factors.
With uncertainty looming, Bitcoin’s next move could be decisive. It will determine whether it resumes its upward trajectory or faces further corrections.
