Bullshit 🤥

Bitcoin has recently showcased some troubling signs, raising concerns that a deeper price correction might be imminent. The flagship cryptocurrency has been unable to sustain the critical $100,000 level, leaving traders and investors anxious about its near-term trajectory.
Technical Analysis
The Daily Chart: A Potential Downtrend
Bitcoin's price enjoyed a steady climb over the past few weeks, reaching a historic high above $100,000. However, this bullish momentum appears to have stalled. Over the last few days, Bitcoin fell below the $100,000 mark, briefly plunging to $92,000.
If the market fails to reclaim the $100,000 level quickly, a slide toward the $90,000 zone—and potentially the $80,000 support level—may be on the cards.
The 4-Hour Chart: Mixed Signals
On the 4-hour chart, Bitcoin’s price movement becomes more nuanced. While it has been forming higher highs and lows within an ascending channel, it recently faced rejection at the channel's upper boundary around $108,000.
The subsequent breakdown below $100,000, coupled with the RSI dipping below 50%, signals a bearish shift in momentum.
Still, hope isn't entirely lost. The lower trendline of the channel remains intact, offering a possible springboard for recovery. A bounce back above $100,000 could reignite bullish sentiment. However, if the channel breaks to the downside, a decline below $90,000 becomes increasingly likely.
On-Chain Analysis
Active Addresses (100-Day MA): A Vital Clue
Examining Bitcoin’s on-chain metrics provides deeper insights into the market’s health. One critical indicator is the number of active addresses, measured by the 100-day moving average.
Recent data highlights a strong recovery in network activity, coinciding with Bitcoin’s breakout above $70,000. However, the metric has yet to hit a new all-time high, creating a notable divergence between price action and network activity.
This disparity raises red flags: if active addresses fail to reach new peaks and instead start declining, it could signal the onset of a prolonged correction for Bitcoin.
Conclusion
Bitcoin’s price is teetering at a pivotal juncture. While the possibility of a recovery remains, the failure to reclaim key levels such as $100,000 could lead to a sharper drop, with $80,000 emerging as a critical support zone. Traders should closely monitor both technical and on-chain indicators to navigate the volatile market ahead.
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