Bitcoin (BTC) is showing signs of weakness as it trades below critical moving averages, potentially signaling a return to bearish market conditions. According to technical analysis from Shaco AI, BTC is currently trading at $107,750, struggling to maintain momentum above key technical levels.
Critical Moving Average Analysis Shows Bearish Pressure
The leading cryptocurrency has fallen below both the 25-hour simple moving average (SMA) at $109,245 and the 50-hour SMA at $110,192, suggesting mounting selling pressure. This technical setup aligns with recent analysis showing Bitcoin’s rejection at the $112K all-time high, indicating bears may be regaining control.
Technical Indicators Paint Cautious Picture
Key technical indicators are flashing warning signs:
- RSI at 36.53 – approaching oversold territory
- MACD at -755.12 – confirming strong bearish momentum
- ADX at 37.85 – indicating a strong directional trend
- Trading volume down to $383.4B from $1.425.44T average
Critical Support and Resistance Levels
Traders should watch these key price levels:
- Resistance: $111,980
- Current Price: $107,750
- Support: $106,800
Expert Analysis and Market Outlook
The significant drop in trading volume, currently at just $383.4 billion compared to the recent average of $1.425.44 trillion, suggests market participants are taking a cautious approach. This aligns with recent data showing changing institutional investment patterns in Bitcoin ETFs.
FAQ Section
Is Bitcoin entering a bear market?
While current indicators show bearish pressure, it’s too early to confirm a full bear market. The price remains above key support levels and institutional interest remains strong.
What are the key levels to watch?
The immediate support level at $106,800 is crucial. A break below could trigger further selling, while resistance at $111,980 needs to be cleared for bullish continuation.
How significant is the current volume decrease?
The 73% drop in trading volume is significant and could indicate a lack of conviction in the market direction, potentially preceding a major move.
