Bitcoin Price Analysis: Is BTC’s Momentum Leaning Bearish After the Crash?

Bitcoin failed to continue its rally and discover new all-time highs above $126,000, leading to a sharp correction that has rattled the market. Investors are showing signs of fear as the recent decline has wiped out the breakout momentum that many expected to extend the bull run, and the market could be on the verge of a bearish shift.

By Shayan

The daily chart

On the daily time frame, BTC failed to move past $126K and has fallen sharply towards the $100K area before quickly recovering. The rejection from the ATH zone, combined with the collapse below the 100-day moving average, signals a loss of bullish momentum.

The next major support is around $100,000, which also aligns with trendline support and the 200-day moving average. The RSI of near 41 suggests that even though the market is cooling, there is still room for further downside if buyers don’t act quickly.

The 4-hour chart

The 4-hour chart shows that BTC found temporary support around the $110K zone after the intense sell-off. This area previously acted as an accumulation zone before the final leg up, making it a crucial short-term level.

The RSI remains weak around 32 and shows limited strength from buyers. Immediate resistance is around $117,000, where previous support turned into resistance. A rejection from this zone could trigger another move lower, possibly towards the $105k region, which aligns with the lower bound of the major ascending channel. A collapse of this channel would likely end the bull market, and Bitcoin would enter a long-term downtrend alongside the entire crypto market.

Sentiment analysis

Long liquidations (7-day MA)

The liquidation chart highlights a massive spike in long-term liquidations, the largest ever, coinciding with Bitcoin’s failure to reach a new high. This cascade has driven over-indebted traders out of the market and significantly reduced open interest.

Historically, such liquidation spurts often mark short-term lows, but given the fragile sentiment, investors remain reluctant to aggressively re-enter the market. The market’s fear-driven tone suggests that while relief is possible, confidence in the uptrend has clearly weakened. This could be the beginning of the end for this cycle’s bullish market, especially if the price closes below $100,000.