In today’s technical analysis, let’s focus on Bitcoin, which experienced a sharp drop yesterday, reinforcing the negative sentiment.
From a structural point of view, the situation remains clearly bearish. The recent price action can be interpreted as a bullish correction within a broader downtrend, marked with red lines. This correction resembles the structure we saw in December and January, where temporary upward movement was followed by another leg lower.
Currently, price is reacting from the upper boundary of this corrective formation, which behaves like a flag. While the bounce from that level is technically visible, it does not change the overall bearish outlook.
In fact, from a technical perspective, it would be healthier for the structure if Bitcoin moved slightly higher before continuing lower. Ideally, the price should retest two key resistance levels. The first is the blue downtrend line, and the second is the green horizontal resistance around the psychological $80,000 level.
As long as Bitcoin remains below these two resistances, the broader sentiment stays negative. The current bounce does not invalidate the bearish scenario, and the expectation remains for another move lower once the corrective phase is completed.
Only a decisive breakout above both the downtrend line and the $80,000 resistance would change the outlook and generate a proper buy signal. However, given the current structure and momentum, the probability of such a move remains limited.