Bitcoin Faces Bearish Pressure: Could BTC Drop Below $80,000?
Bitcoin (BTC) is showing signs of weakening after failing to breach the critical resistance level of $88,800. Over the past 24 hours, its price dipped below $87,000, raising concerns that a bearish momentum may be building in the short term.
Key Indicators Signal a Potential Downtrend
Technical indicators, such as the Directional Movement Index (DMI) and Ichimoku Cloud, suggest that sellers are gaining control over the market. Bitcoin's price movement near crucial support levels hints that upcoming U.S. economic data could play a significant role in determining its next trajectory—whether it rebounds or undergoes a deeper correction.
DMI Shows Growing Bearish Control
Bitcoin's DMI chart currently highlights a weakening trend strength, with the Average Directional Index (ADX) reading at 21.51. A trend shift has occurred, turning from bullish to bearish, as reflected by directional indicators. Over the past few days, BTC’s buying momentum has declined, allowing bears to take the upper hand.
The +DI, representing bullish strength, has dropped significantly from 26.33 to 14.58, signaling waning buying interest. Meanwhile, the -DI, which measures bearish pressure, surged from 13.2 to 33.41, confirming that sellers now dominate the market. This stark crossover between the +DI and -DI suggests a continued downward trajectory unless buyers regain momentum quickly.
Ichimoku Cloud Hints at Strengthening Bearish Trend
Bitcoin's Ichimoku Cloud chart also reinforces the bearish outlook. The price has fallen below the Tenkan-sen (blue line) and Kijun-sen (red line), suggesting diminishing momentum. More concerning is that the most recent candle has pierced through the lower boundary of the green cloud (Kumo), a key signal of a potential trend reversal or deeper correction.
In the Ichimoku system, when the price is below the cloud, it indicates a bearish trend. The cloud, which previously acted as a support level, may now serve as resistance if BTC attempts a rebound. Additionally, the future cloud appears to be thinning, hinting at a decrease in trend strength.
Will Bitcoin Rebound or Drop Below $80,000?
Currently, Bitcoin is hovering near a key support level at $84,736. This level is crucial for determining the short-term price direction. A break below it could trigger a deeper correction, potentially driving BTC to the next support at $81,162. Should this support fail, Bitcoin may see further downside, with $79,970 and $76,644 as the next possible levels of interest.
However, macroeconomic factors, such as upcoming U.S. PMI data and consumer confidence reports, could shift sentiment in favor of the bulls. Positive economic indicators could help Bitcoin regain lost momentum and attempt a rebound. If BTC can break above $88,800, the next targets lie at $92,928 and $96,503. A sustained rally beyond these levels could renew optimism for a push toward the $100,000 milestone in April.