Bitcoin Price Analysis: Will BTC’s Brutal Selloff Stop After Falling Below $81,000?

Bitcoin continues to bleed and print new local lows as the market fails to find strong support. The broader structure has broken down and sellers remain in control after a series of distribution moves near highs. Despite oversold signals creeping in, the lack of a proper futures capitulation keeps the downside risk open.

By Shayan

The daily chart

On the daily time frame, BTC has officially broken below the long-standing ascending channel that held price action for months. After the 50-day moving average fell below the 200-day moving average and formed a death cross, the price accelerated downward.

Support levels around $100,000 and $86,000 were easily breached, and BTC is now moving towards the next demand zone near $76,000. The RSI is also deep in oversold territory, but there has been no sharp reversal candle or volume spike that typically follows capitulation. More negative consequences can therefore be expected in the short term.

The 4-hour chart

If we zoom in on the 4-hour chart, the trend is within a pure descending channel. However, BTC recently broke below the lower limit, showing strong seller momentum. Small attempts at bouncing were weak and short-lived, leaving their mark only like candle wicks.

Any retest of the $85K zone could now act as resistance as it has been broken to the downside. With the RSI hovering around 20 in oversold territory and showing multiple failed recoveries, the short-term momentum remains clearly bearish unless a deviation back into the channel occurs on strong volume.

Sentiment analysis

Financing rates

Financing rates on the exchanges are still hovering in positive territory despite the aggressive price decline. This disconnect shows that many traders are still holding long positions and may be waiting for a recovery.

It is an important signal: the market has not yet undergone a complete liquidation or capitulation. A true Bitcoin low is often marked by negative funding rates and a sharp spike in liquidations. Until that happens, downside pressure could continue and any relief rallies could be sold off.