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Bitcoin Structure Turns Bearish as Indicators Show Downside Pressure
Bitcoin is struggling to reclaim the $90,000 level, currently testing critical demand around $86,000. Momentum has faded with upside attempts rejected, indicating a potential transition into a bear market rather than a temporary pullback.
- A recent analysis shows Bitcoin’s price action aligns with a deteriorating market structure.
- The Structure Shift composite signal is near -0.5, indicating sustained downside pressure.
- Bitcoin price hovers around the lower boundary of the 21-day Donchian Channel, just above $85,000 support.
Bearish Market Indicators
- The Structure Shift signal confirms Bitcoin is in a bearish structural zone.
- The Bull-Bear market structure index shows bullish momentum at only 5%, while bearish components deepen due to futures selling pressure.
- Short-term momentum is controlled by bears; spot demand struggles against derivatives-led selling.
Bitcoin's price remains under downside pressure, trading around $86,500 after failing to surpass resistance zones. The price is below key moving averages (50-day and 100-day), which have turned into resistance.
- Interaction with the 200-day moving average is critical; absence of buying support indicates fragility.
- Bitcoin maintains a lower-high, lower-low pattern since October peak at $125K.
- To regain control, bulls need BTC to stabilize above current demand and reclaim key moving averages.
The dominant risk remains continued downside pressure unless structural improvements occur and spot accumulation strengthens.
Authors credited by the source: Sebastian Villafuerte
Published by Holder based on an external source.
