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Key Highlights:
- Bitcoin faces resistance at around $85K, with support at $80K holding key price levels.
- Recent data suggests a market shift from bullish to bearish conditions.
- Profit-taking by whales and declining capital inflows signal growing selling pressure.
Bitcoin price has faced significant challenges recently, slipping from a high of nearly $108K in January to around $82K by mid-March. Despite several efforts to regain the $100K level, the OG crypto has faced difficulties sustaining upward momentum.
Its performance continues to show a clear downward trend. The recent market performance of Bitcoin reflected growing selling pressure and shifts in investor sentiment.
Bitcoin Price Resistance and Support Levels
Bitcoin price continues to face a key resistance level near $85K, where the price has failed to break through multiple times. This resistance area suggests insufficient bullish momentum to push the price higher.
On the downside, Bitcoin’s $80K level is a critical support zone. This area has kept Bitcoin from falling further. If the price drops below this support, Bitcoin may face further decline. The next significant support level is projected at $75K.
Shifting Market Dynamics
Recent data, including Bitcoin’s Inter-Exchange Flow Pulse (IFP) chart, highlights a shift in market conditions. After a bullish phase from September to February, the IFP signal dropped in mid-February, entering bearish territory.
This change coincided with Bitcoin price falling below $90K, a sign of increasing selling pressure. Additionally, the 90-day moving average still trends upwards. However, its divergence from the current price suggested the market could experience higher volatility shortly.
Furthermore, BTC’s Market Value to Realized Value (MVRV) Momentum chart showed weak bullish momentum.
The MVRV ratio, which tracks the valuation of Bitcoin relative to its historical cost, has declined. This typically signals increased selling pressure as the market moves from overvaluation toward a potential correction phase.
Bearish Indicators and Profit-Taking
Several other bearish signals are further coming across. The CryptoQuant Bull-Bear Market Cycle Indicator has entered extremely bearish territory. This suggested that Bitcoin price might be heading toward a more significant correction.
A historical shift into bearish territory has preceded prolonged downtrends for the asset. In addition, the 30-day moving average has crossed below the 365-day moving average. This also supports the weakening long-term momentum.
Large BTC holders, or whales, are also taking profits. At the time when Bitcoin fell from $92K to $83K, long-term holders accepted a whopping $260 million in profits.
Whales may also hope for additional downside in the Bitcoin price. This could put more pressure on the Bitcoin price after profit taking.
Additionally, some see the recent Bitcoin rally as not sustainable due to a sharp decline in capital inflows. Capital inflows were at their peak in December 2023 with $135 Billion.
At the same time, by March 2025, numbers were down to $4.16 Billion. The sharp decrease in capital flows implies that investor interest may be subsiding and contributing to the recent price decrease.
Bitcoin Price Key Support at $69,450
Besides this, Bitcoin’s support levels are necessary for identifying future price actions. According to IOMAP data from IntoTheBlock, the $79,270 level is a strong support zone. Many Bitcoin addresses, holding 831.9K BTC, are concentrated within this price range.
If BTC price drops below this level, it could set off further declines toward subsequent major support at $69,450. About 1.4 million BTC has yet to see the light of day above it.
Despite Bitcoin hitting the backtest of the former support zone, these zones remain crucial to Bitcoin’s short-term price outlook.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
