Bitcoin holders are facing a tough moment in the market right now as the price struggles to break through important resistance levels. After a strong run earlier in the year, Bitcoin has been stuck in a sideways and then downward pattern, leaving many wondering if long term holders are starting to lose faith and exit their positions. The recent price action shows that Bitcoin failed to reclaim key levels, and this has led to increased selling pressure and a wave of uncertainty among investors.
For months, the $98,000 to $100,000 range has acted as a major resistance zone. Every time Bitcoin tried to move above this area, it was quickly pushed back down. This repeated failure has created a sense of frustration for bulls who were hoping for a breakout. Instead, the price has now dropped below this level and is testing lower support zones around $94,000 to $96,000. This region is important because it was a place where a lot of buying activity happened earlier in the year. Many long term holders bought Bitcoin in this range, making it a potential base for future price action.
However, the fact that Bitcoin is now trading below its previous support suggests that some holders may be giving up. When a key level breaks, it often signals a shift in market sentiment. Traders and investors who were confident in Bitcoin’s ability to rise higher may now be reconsidering their positions. The breakdown of the trendline that was in place for much of the year is another sign that the bullish momentum has faded. This trendline had been guiding the price upward, and its break means that the short term structure is now bearish.
Looking at the charts, there are clear signs that selling pressure is increasing. The daily candlestick pattern shows a series of lower highs and lower lows, which is typical of a downtrend. The 100 day and 200 day moving averages are both above the current price, acting as resistance. This means that even if Bitcoin tries to bounce, it will face strong selling from traders who are watching these moving averages. The rejection from the 100 day moving average at $110,000 was a major event that triggered the latest wave of selling.
Another important factor is the liquidity distribution in the market. When Bitcoin broke below $98,000, it swept away a large cluster of buy orders that were placed in that area. This is known as a liquidity sweep, and it often leads to further downside as traders who were expecting a rebound are forced to exit their positions. The next major support zone is now seen between $88,000 and $84,000, with even deeper targets around $77,000 to $74,500. These levels are based on historical price action and the concentration of buy orders from previous cycles.
The 61 percent Fibonacci retracement level is also being watched closely by traders. This is a technical level that many believe could act as a turning point. When Bitcoin reaches this zone, it often triggers a reaction, either a bounce or a further drop. Right now, the price is testing this level, and the outcome will be important for the next phase of the market. If Bitcoin can hold here and form a higher low, it could set the stage for a recovery. But if it breaks below, the selling could accelerate.
On the four hour chart, the structure is still bearish. The breakdown of the rising wedge pattern confirmed the shift in momentum. After the breakdown, Bitcoin returned to the underside of the trendline near $106,000 to $108,000, where it was rejected. This rejection turned the trendline into resistance, making it harder for the price to move higher. The subsequent selloff pushed Bitcoin into the $94,000 to $96,000 demand zone, which has historically been a place where medium term reversals have started. However, the current structure remains heavy, and there are no clear signals yet that a sustainable recovery is underway.
For any short term strength to develop, Bitcoin needs to reclaim the $101,000 to $103,000 liquidity pocket. This area is now acting as the nearest barrier to any upward movement. Until the price can break above this level, the risk of further downside remains high. Traders are watching this zone closely, and a successful reclaim could spark a short term rally. But if the price fails to break through, the bearish pressure is likely to continue.
The behavior of long term holders is also a key factor to watch. When the market is under pressure, these investors often act as a stabilizing force by holding onto their Bitcoin. But if the selling pressure becomes too strong, even long term holders may start to exit their positions. This could lead to a deeper correction as more supply enters the market. The current environment suggests that some holders are already starting to sell, especially after the breakdown of key support levels.
ETF flows and exchange reserve trends are also important to consider. If large amounts of Bitcoin are being withdrawn from exchanges, it could indicate that holders are moving their coins to cold storage, which is a sign of long term confidence. But if there is a surge in selling through ETFs, it could signal that institutional investors are exiting their positions. These factors will play a big role in determining the next move for Bitcoin.
The overall picture is that Bitcoin is in a period of heightened volatility and uncertainty. The failure to break key resistance has led to increased selling pressure and a shift in market sentiment. While there is still potential for a bounce in the short term, the risk of further downside remains high. Traders and investors are watching closely for signs of a reversal, but for now, the market is leaning bearish.