Bitcoin’s Recovery Stalls: Bears Eyeing $75K Support as Key Indicators Turn Bearish
Bitcoin’s (BTC) recovery rally has lost momentum since Sunday, putting the market at risk of a bearish shift as key technical indicators show signs of weakness.
The $86,000 mark has become a significant resistance level, with bulls struggling to maintain gains above it. This failure to break through has raised concerns of a bearish realignment in important momentum indicators, particularly the 50-, 100-, and 200-hour simple moving averages (SMAs). When these averages are stacked in descending order and pointing downward, they signal a bearish market.
Both the 50- and 100-hour SMAs have peaked and are on track to cross bearish, with the 50-hour SMA poised to drop below the 100-hour SMA. While the price remains above the 200-hour SMA for now, the impending bearish crossover of the shorter-term averages suggests that sellers are beginning to take control.
Additionally, the daily chart’s MACD histogram has stopped printing higher bars above the zero line, indicating a loss of upward momentum, which supports the bearish outlook.
Considering the downward trajectory of the 50- and 100-day SMAs, bulls should proceed with caution. A drop below the key support at $83,000 could confirm the bearish shift, potentially triggering a sell-off toward the recent lows around $75,000.
For the bullish case, a close above $86,000 on the UTC chart would be necessary to signal a continuation of the recovery rally.
