Bitcoin Faces Risk of Bearish Shift as Bulls Struggle to Overcome $86K Resistance
Bitcoin’s (BTC) rally has lost momentum since Sunday, with the $86,000 level continuing to act as a strong resistance. As the price stalls, there is increasing concern that key technical indicators are signaling a potential bearish shift.
The $86K mark has proven challenging for bulls to surpass, and this failure to break through could lead to a shift in momentum. Crucial momentum indicators, such as the 50-, 100-, and 200-hour simple moving averages (SMAs), are showing signs of bearish alignment. When the shorter-term SMAs trend below the 200-hour SMA, it typically indicates a weakening market sentiment.
The 50- and 100-hour SMAs have topped out and are on track to produce a bearish crossover, with the 50-hour SMA expected to fall below the 100-hour SMA. While Bitcoin’s price remains above the 200-hour SMA, this crossover suggests that the market may be heading toward more selling pressure.
The daily MACD histogram also reflects a slowdown in upward momentum, no longer printing higher bars above the zero line. This drop in momentum further supports the notion of a potential bearish trend in the near term.
Given the overall downtrend in the 50- and 100-day SMAs, bulls should proceed with caution. A break below the $83,000 support level would confirm the bearish outlook, potentially pushing Bitcoin toward a retest of the $75,000 support.
For a bullish continuation, Bitcoin needs to close above $86,000 on the UTC chart, signaling that the recovery rally is still intact.
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