Bitcoin rebounded by as much as 14% after plunging to a four-month low near $76,600 on March 11. But BTC price is down approximately 25% from its record high of around $110,000, which is normal for a “bull market correction.”
Still, some analysts anticipate the Bitcoin price declines to continue in the future.
Bitcoin faces renewed bearish pressure after rejecting at $87,470, the descending channel resistance, with a “dark cloud cover” pattern reinforcing the downtrend, according to an analysis shared by GDXTrader on X.
The dark cloud cover pattern occurs when a strong green candle is followed by a red candle that opens above the previous close but closes below the midpoint of the first candle’s body.
Such a shift in sentiment indicates that buyers attempted to push higher but were overpowered by sellers, often leading to further downside.
Bitcoin's failure to close within the $90,000-$93,000 resistance zone suggests a lack of buying conviction, GDXTrader noted, saying the cryptocurrency will remain under bearish pressure unless it decisively breaks above the said range.
Bitcoin’s potential to decline further arises from its “perfect rejection” after testing the $86,000-88,000 zone as resistance, according to analysis from popular trader CrediBULL Crypto.
Notably, Bitcoin attempted to break toward the local supply zone marked in red but failed to sustain above the said resistance zone, illustrated by the orange circle in the chart below.
Failure to reclaim the supply zone has increased the probability of a drop toward lower support levels around $77,000-79,000 (highlighted in green) by March. Testing this area as support has led to sharp price rebounds in March.