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Bitcoin (BTC) Eyes Potential 11% Drop as Bearish Signals Strengthen
Bitcoin (BTC) reached an all-time high on December 17 but remains 5% below the $110,000 mark. Indicators such as ADX and NUPL are signaling a slowdown in bullish momentum, suggesting a potential shift in market sentiment.
While BTC remains in the “belief-denial” zone, highlighting continued confidence, its failure to break above key resistance levels raises caution. The next few days will determine whether BTC regains bullish momentum to test $110,000 or faces additional corrections towards critical support levels.
BTC’s Current Trend Shows a Potential Shift in Sentiment
Bitcoin’s DMI chart reveals that ADX is currently at 29.2, down significantly from over 40 just two days ago when BTC reached an all-time high. This decline in ADX indicates that while the trend remains relatively strong, its intensity is fading.
With bearish momentum taking hold, the market appears to be heading towards a period of consolidation or potential further decline.
The ADX (Average Directional Index) measures the strength of a trend, with values above 25 indicating a strong trend and below 20 indicating a weak or untrending market. Currently, BTC’s D+ at 18.1 and D- at 27.8 indicate that bearish forces are dominating, with sellers outperforming buyers in the short term.