Bitcoin Faces Bearish Trend: Potential for Further Declines Below $80,000

Cryptonews Politics ASIA, BIT, BITCOIN, BLACKROCK, BTC, BTC & ETH ETF, CHINA, COINGLASS, CRYPTOCURRENCY, MARKET ANALYSIS, MARKET TRENDS, MEXICO, NORTH AMERICA, UK Clara Montgomery February 28, 2025

Bitcoin Faces Bearish Trend: Potential for Further Declines Below $80,000

Bitcoin has recently fallen below $80,000 due to renewed tariff concerns, leading to significant sell-offs by institutions. Short positions have outnumbered longs dramatically, indicating a major shift in market sentiment. The cryptocurrency’s price is currently testing crucial support levels, with the potential for further declines if these levels are breached.

Bitcoin appears to be in a persistent bearish trend, recently falling below $80,000 amidst renewed concerns of a tariff war with China and possibly the UK. This downturn has created significant uncertainty for market participants and institutions alike, prompting significant sell-offs among institutional investors, including Blackrock, which has sold billions in Bitcoin and Ethereum ETF holdings, intensifying the selling pressure on Bitcoin.

Since falling from its previous range around $96,000, traders have predominantly adopted a bearish outlook towards Bitcoin. The market sentiment has shifted towards shorting Bitcoin, with recent data indicating that the volume of Bitcoin short positions has dramatically surpassed long positions, with a ratio of 10:1. Currently, shorts exceed $1.52 billion in value, while long positions rest at approximately $10 million, indicating a notable shift in trading strategy.

The weekly analysis of Bitcoin illustrates a stark bearish trend, erasing gains accumulated over several months. This decline, reflected in a single weekly candle, suggests a waning bullish sentiment among traders. Bitcoin’s current price is approaching a crucial support level, and a failure to maintain this support could result in a further 20% decline below previously established highs.

Bitcoin is testing a significant support level that served as resistance during its previous bull run. A rebound must occur here, or the cryptocurrency risks mirroring previous patterns seen in 2022, where it plummeted after breaking from an ascending trend line. Should Bitcoin fail to hold the support around $72,207, it may descend closer to the $69,000 mark, reflecting escalating selling pressure despite potential bullish interventions.

The current situation surrounding Bitcoin showcases a substantial bearish trend fueled by external market pressures and a shift in trader sentiment. With BTC dropping below $80,000 and institutional liquidation contributing to the downturn, the cryptocurrency faces critical support levels that, if breached, may lead to further declines. Investors remain watchful as the landscape evolves, contemplating the implications for future price movements.

Original Source: coinpedia.org