4 Red Months in a Row? Bitcoin Faces Rare 2018-Style Crash Signal
Bitcoin (BTC) is trading under pressure after failing to break a key resistance level. The asset remains below $90,000, with technical patterns suggesting a deeper move toward $70,000 in the coming days or weeks.
Price Fails at Key Resistance
Bitcoin was rejected at the $94,000 to $98,000 range after several attempts to break through it. This area acted as neckline resistance in a larger technical setup. After the rejection, the price moved sharply lower, confirming a bearish trend. A failed Head and Shoulders pattern and a bear flag breakdown support the current move.
The asset hovers around $88,000 at press time. Analysts are tracking three support levels: $80,000, $75,000, and $70,000. According to analyst Crypto Patel, these levels match the expected move from the breakdown, which points to a possible 22% decline. The trend is considered bearish until the price regains and holds above $92,000.
Over the past seven days, Bitcoin has fallen more than 6%. Despite a small recovery of under 1% in the last 24 hours, the asset remains near its lowest point in a month. The market is waiting for a decision from the US Federal Reserve and earnings reports from major tech companies. Both events could affect sentiment across risk assets.
Bitcoin’s decline has also followed a series of large liquidations in the derivatives market. These forced sell-offs added pressure during a week marked by wider uncertainty in global markets, including sharp moves in currencies and US bonds.
Key Technical Levels in Focus
According to Material Indicators, a CoinMarketCap contributor, the 50-day simple moving average near $90,000 is acting as resistance. Liquidity worth over $50 million is sitting above that level, making it harder for bulls to regain control. The 21-day moving average is near $91,500 and could add to the resistance if the price rises again.
A crossover between the 21-day and 50-day moving averages is expected next month. If the shorter average crosses below the longer one, it could add to the bearish pressure.
In addition, another analyst, BitBull, reports that Bitcoin is sitting near the Active Investor Mean at $87,500. This often acts as a decision point—if held, it may attract support. If lost, the asset may fall toward $80,700, which has historically served as a deeper support level.
Short-term holder cost basis is above $96,000, meaning many are now in a loss. This creates selling pressure above the current price. Long-term holders, by contrast, remain in profit, with their average cost closer to $56,000.
Crypto analyst Aman also observed, “$BTC is on the edge of a 4th consecutive red month,” a rare pattern last seen in 2018. As we previously reported, market analysts remain cautious about current price levels, noting that recent lows may not mark a final bottom.
The post 4 Red Months in a Row? Bitcoin Faces Rare 2018-Style Crash Signal appeared first on CryptoPotato.
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