Bitcoin is trading around $66,200 as technical indicators signal potential for a deeper correction. Analysts note the cryptocurrency is forming lower lows and lower highs after a rejection at the $75,000 resistance level. A historically significant moving average crossover on a three-day chart has also been observed, which in the past has preceded the final phase of bear market cycles.
Bitcoin’s price structure shows weakening momentum as it trades near $66,200. The coin was recently rejected at a strong overhead resistance level of $75,000.
This rejection has led to a pattern of lower lows and lower highs. Accelerated volume during recent downward price activity indicates distribution by traders.
The Relative Strength Index is near 34, reflecting weak momentum conditions. A break below the $60,000 support could lead to further declines.
According to data from TradingView, the current price remains close to its level prior to the rejection. The $60,000 zone currently acts as a major demand area.
Analyst Ali Charts recently highlighted a critical technical signal on X. “Every occurrence of a three-day death cross of the 50/200 simple moving averages has led to the final leg of Bitcoin’s price downtrends during past BTC bear markets,” the post stated.
While lagging, these moving averages have been reliable for identifying long-term cycle characteristics. Traders are now watching to see if this pattern will again signal market capitulation.
Bitcoin has reached a critical juncture in its technical positioning. The coming weeks will be important for determining its trend direction.
