Bitcoin is at a critical juncture, fighting to maintain support at $80,000 as sellers test its strength. If this level breaks, the next key target is $75,000.
Technical Analysis
Daily Chart: A Crucial Support Zone
Bitcoin’s $80K support aligns with both the ascending channel’s lower boundary and the 0.618 Fibonacci level. This confluence suggests strong demand, which could prevent further declines.
However, if bearish pressure intensifies, a drop to $75K becomes likely. Currently, BTC is moving within a tight range between $80K and $85K. A decisive breakout will determine the next trend.
4-Hour Chart: Consolidation After a Dip
After briefly falling below $78K, Bitcoin entered a consolidation phase with low volatility. The Relative Strength Index (RSI) signals a bullish divergence, indicating weakening bearish momentum.
This increases the chances of a short-term rebound toward $85K, which marks the upper boundary of the descending wedge. Until a breakout occurs, BTC is expected to trade within this range.
On-Chain Analysis: Futures Market Trends
The funding rates metric, which reflects market sentiment in futures trading, has been declining. Sellers are aggressively opening short positions, pushing rates into negative territory.
While this might seem bearish, a similar trend occurred in summer 2024, just before BTC staged a strong rally. This suggests the market could be in a deep consolidation phase, potentially setting up for a future breakout.
