Bitcoin is currently trading just above the key $85,000 level, a point that holds both psychological and technical significance. This support is likely to be tested before the market establishes a clear direction. However, a recent analysis warns of potential trouble ahead for the cryptocurrency.
A classic bearish pattern, known as a descending triangle, has formed on Bitcoin’s daily chart. This pattern features a series of lower highs while the price consolidates against a horizontal support level at $85,000. Adding to this level’s importance is the Point of Control (POC), which marks the price with the highest trading volume and sits near the same $85,000 zone.
A decisive break below this critical support could trigger a sharp price decline, potentially leading to liquidations and capitulation. This downward pressure could intensify if there is insufficient buying demand to restore bullish momentum.
Further supporting the bearish outlook is a notable on-chain observation. The metric tracking Bitcoin withdrawals from exchanges has dropped to around 5,000, its lowest level since 2016. This figure is even lower than readings seen during previous bear markets in 2018, 2020, and 2022.
A decline in exchange withdrawals typically signals reduced investor conviction and accumulation activity, as coins moved to private wallets often indicate long-term holding intent. The current low level suggests a lack of urgency to acquire and secure Bitcoin, pointing to widespread skepticism or exhaustion in the market. The analyst behind the data concludes that genuine, non-speculative demand is largely absent.
If the $85,000 support fails, this lack of interested buyers could lead to a rapid price drop for Bitcoin. At the time of writing, Bitcoin is valued at $87,410, showing little movement over the past 24 hours.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Bitcoin Could Test 85000 Again as Bearish Signals and OnChain Weakness Converge designed to be helpful for both beginners and more experienced individuals
Beginner Concept Questions
1 What does the headline Bitcoin Could Test 85000 Again actually mean
It means that some analysts believe the price of Bitcoin has the potential to rise back up to the 85000 level to see if it can break through that price point which it may have reached or approached before
2 What are bearish signals in simple terms
Bearish signals are indicators or patterns that suggest the price of an asset is more likely to go down than up in the near future Think of a bear swiping its paws downward
3 What is onchain weakness
Onchain refers to data recorded on the Bitcoin blockchain itself Weakness means this data shows behaviors that are not typically seen during strong healthy price rallieslike longterm holders selling or new money not flowing in
4 How can something be both bullish and bearish at the same time
This is the core of market analysis It means there are conflicting forces positive price momentum might push it higher but underlying data and other technical indicators are warning of a potential pullback It highlights uncertainty and risk
Intermediate Market Analysis Questions
5 What are some common bearish signals analysts are looking at right now
Common ones include the price struggling to stay above key moving averages declining trading volume on rallies and negative divergences on momentum indicators like the Relative Strength Index
6 What specific onchain data shows weakness
Examples include
Declining Exchange Balances If coins arent being moved to exchanges it can mean less immediate selling pressure but also less new buying interest
Hodler Behavior If wallets holding Bitcoin for a long time start distributing coins it can signal they believe a top is near
Low Network Growth A slowdown in the creation of new active addresses can suggest weakening adoption or speculative interest