Bitcoin Crash: Is Bitcoin's Bull Run Over?

Bitcoin (BTC) has been the dominant force in the crypto market, but its recent price action has left traders questioning whether the bull run is losing steam. After touching highs near $100,000, BTC price has suffered a notable pullback, currently trading at $86,270, reflecting a 2.12% decline for the day.

With increasing volatility, many are wondering: Is Bitcoin on the verge of a major crash, or is this just another correction before the next leg up? Let’s analyze the BTC price daily chart to understand what’s happening under the surface and where Bitcoin might be headed next.

Bitcoin Crash: Why Is Bitcoin Price Crashing?

Bitcoin has been in a downtrend for the past few weeks, facing increasing selling pressure as traders take profits after its meteoric rise. The recent price rejection from $90,000+ suggests that BTC is struggling to maintain its bullish momentum, with buyers failing to hold key support levels.

Another factor contributing to the pullback is the weakening macroeconomic sentiment, as high-interest rates and regulatory pressures continue to weigh on the crypto market. Additionally, liquidations of leveraged positions have accelerated the downward move, causing short-term volatility spikes.

Is Bitcoin Oversold or Is There More Downside?

The Relative Strength Index (RSI) is currently at 38.70, hovering just above oversold territory. This indicates that while Bitcoin has seen significant selling, it is not yet fully oversold, meaning there could still be room for further downside.

If the RSI dips below 30, Bitcoin might enter a deeply oversold zone, which could trigger a strong bounce-back rally. However, until the RSI climbs above 50, Bitcoin remains in bearish territory, signaling that sellers are still in control.

What Is the MACD Signaling for Bitcoin Price?

The Moving Average Convergence Divergence (MACD) is currently showing a negative trend, with the MACD line below the signal line. This suggests that bearish momentum is still dominant, and BTC price needs a clear bullish crossover for any sign of a trend reversal.

The MACD histogram remains in the red zone, indicating continued selling pressure. However, if the bars start to shrink in size, it could signal bear exhaustion, meaning a potential reversal might be on the horizon.

Where Is the Next Support for Bitcoin Price?

Bitcoin is currently testing a key support level at $85,000-$83,000. If BTC price breaks below this range, the next major support zone is around $80,000-$78,000, where strong buying interest is expected.

If Bitcoin fails to hold above $78,000, the bearish scenario could accelerate, dragging BTC down to $70,000 or even $65,000 in the worst case. However, if BTC bounces from $85,000+, it could reclaim $90,000 as a key resistance level before attempting to move higher.

Will Bitcoin Price Recover or Continue to Fall?

Bitcoin is at a critical decision point. If BTC can hold above $85,000 and show strong buyer demand, a rebound towards $90,000+ could happen in the short term. However, if selling pressure persists and BTC breaks below $80,000, we could see a more significant market correction.

Should You Be Worried About a Bigger Bitcoin Crash?

While Bitcoin’s recent drop has triggered concerns, it is important to remember that pullbacks are normal in bull markets. The RSI and MACD indicate weak momentum, but BTC is still above key support levels, meaning the market hasn’t completely turned bearish yet.

If Bitcoin holds above $85,000, this could be a healthy correction before another move higher. However, if BTC loses $80,000 support, it could signal the start of a larger bearish phase, potentially bringing Bitcoin back into bear market territory.