Bitcoin (BTC) saw a rebound of up to 14% after dropping to a four-month low around $76,600 on March 11. However, the BTC price remains approximately 25% lower than its all-time high of about $110,000, which is typical for a “bull market correction.”
Nevertheless, some analysts predict that Bitcoin’s price declines may persist moving forward.
“Dark cloud” suggests Bitcoin may be peaking
Bitcoin is facing renewed bearish pressure after being rejected at $87,470, which serves as the descending channel’s resistance, with a “dark cloud cover” pattern further confirming the downtrend, as noted in an analysis from GDXTrader on X.
BTC/USD daily price chart. Source: TradingView/@GDXTrader
The dark cloud cover pattern is characterized by a strong green candle followed by a red candle that opens above the previous close but closes below the middle of the first candle’s body.
Illustration of a dark cloud cover. Source: GoldenEye Analysis
This shift in sentiment indicates that buyers made an attempt to push the price higher but were overwhelmed by sellers, often resulting in further price declines.
GDXTrader highlighted that Bitcoin’s inability to close within the $90,000-$93,000 resistance zone points to insufficient buying enthusiasm, suggesting the cryptocurrency will remain under bearish pressure until it breaks above this range decisively.
BTC price shows “perfect rejection,” indicating risk towards $65,000
Bitcoin’s potential for further decline stems from its “perfect rejection” after testing the $86,000-88,000 resistance zone, as per analysis from renowned trader CrediBULL Crypto.
Related: Why Bitcoin’s price struggles to surpass $87.5K
It’s noteworthy that Bitcoin attempted to break into the local supply zone, indicated in red, but failed to maintain levels above this resistance zone, as shown by the orange circle in the following chart.
BTC/USD hourly price chart. Source: TradingView/CrediBULL Crypto
The failure to reclaim the supply zone has increased the likelihood of a drop to lower support levels around $77,000-79,000 (highlighted in green) by March. Historically, testing this area as support has led to significant price rebounds in March.
However, if this support zone fails, a deeper decline below the $77,000-79,000 region could extend towards the $65,000-74,000 area—the larger green liquidity zone illustrated in the chart above—by April.
Analyst George shared a similar perspective, as shown below.
Source: George1Trader/X
“Challenging to remain bullish” with a bear flag pattern
As per analyst CryptOpus, Bitcoin continues to show a close correlation with traditional equity markets, particularly the S&P 500 (SPX) and Nasdaq 100 (NDX), both of which exhibit bear flag patterns in their charts.
A bear flag occurs when the price consolidates upward within an ascending parallel channel. It resolves if the price breaks below the lower trendline, typically resulting in a drop equal to the height of the preceding downtrend.
Source: CryptOpus
BTC is following a comparable bear flag structure, with $84,000 serving as the lower trendline support. A break below this level could result in a more pronounced sell-off, targeting $72,000 under the technical rules described above.
Moreover, Bitcoin’s correlation with equities has intensified due to an overall decline in risk-on sentiment, exacerbated by the global trade war initiated by former US President Donald Trump.
BTC/USD and Nasdaq Composite 30-day correlation. Source: TradingView
Arthur Breitman, the co-founder of Tezos, has identified the potential US recession as one of the most significant external threats to the crypto market.
This article does not provide investment advice or recommendations. All investments and trading moves carry risks, and readers should perform their own research before making any decisions.
