Market Analysis: Bitcoin’s Critical Support Test
Bitcoin’s recent market correction has sent shockwaves through the crypto community, with prices plummeting to $80,000 amid growing bearish sentiment. As highlighted in recent market analysis showing short-term holder exodus, technical indicators suggest further downside potential.
Double Top Formation Signals Bearish Reversal
A concerning double top pattern has emerged on Bitcoin’s chart, formed by twin peaks at $108,000 and $109,000 in December and January respectively. This bearish formation, combined with a breach below the critical $91,500 neckline, points to an imminent test of lower support levels.
Key Technical Levels:
- Primary Support: $76,000
- Secondary Support: $73,000
- Critical Floor: $67,000 (Fibonacci maximum)
- Previous Resistance: $91,500
On-Chain Metrics Paint Mixed Picture
Despite the price decline, blockchain analytics firm IntoTheBlock reports a significant surge in active addresses, reaching levels not seen since December 2024. This increased on-chain activity typically signals major market turning points, though interpretation remains divided between bearish capitulation and accumulation theories.
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Market Implications and Trading Outlook
Current market data shows:
- 24h Trading Volume: $71.43 billion (+13.69%)
- Current Price: $84,961 (+2.54%)
- Total Liquidations: $670 million
Traders should watch the $73,000-$76,000 range carefully, as strong buying pressure at these levels could trigger a sharp reversal. However, failure to hold could accelerate the decline toward the $67,000 Fibonacci target.
Source: NewsbtC