Bitcoin is on the verge of ending the month with a bearish tone, potentially stalling the ongoing rally. The technical indicators have turned bearish, and trading activity has decreased significantly, supporting the bearish outlook. However, there is a hidden bullish divergence forming, suggesting a potential rebound in the near future. Therefore, each dip could be seen as a buying opportunity, as Bitcoin is poised to surpass the major resistance level at $90,000 soon.
Despite failing to hold a crucial support level, Bitcoin has seen a surge in bearish activity. The bulls have struggled to push the rally above the ascending resistance, further confirming the bearish sentiment. Nevertheless, traders remain optimistic about Bitcoin’s future, as evidenced by continued accumulation despite the prevailing downward trend.
The long-term holder supply chart indicates a rebound and a rise, suggesting a shift towards optimism among traders who continue to hold Bitcoin despite the prevailing bearish sentiment. This also hints at a potential supply squeeze on the horizon. Additionally, there is significant upward pressure on Bitcoin’s price in the short term, indicating more accumulation in the future.
Looking at the chart, Bitcoin’s price has dropped below the 200-day moving average after breaking the ascending trend line that had been in place since September 2024. The decreasing volume has contributed to the bearish technical outlook, with the bull market support band (BMSB) and MACD nearing a bearish crossover. The current trade setup suggests that Bitcoin’s price may test local support around $81,000. A rebound could push the price above $83,000, while a drop below $77,000 appears likely if the bulls fail to trigger a turnaround.
