Bitcoin Faces 8.5% Drop Risk as Bearish Pattern Emerges
1min read Bitcoin (BTC) is currently facing significant market volatility, with experts warning of a potential price decline. On March 26, 2025, the cryptocurrency market experienced substantial price swings, leading to a bearish outlook for btc. Technical analysis indicates that BTC has formed a bearish rising wedge pattern on the four-hour timeframe, suggesting a potential breakdown.
According to expert analysis, if BTC fails to maintain its position above the $86,200 level and closes a four-hour candle below this mark, there is a strong possibility of an 8.5% drop, bringing the price down to $78,700. This bearish pattern is further supported by the fact that BTC is currently trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating a downtrend.
Despite the bearish sentiment, there are signs of accumulation by whales and long-term holders. On-chain analytics firm coinglass reports that exchanges have witnessed a significant outflow of $233 million worth of BTC in the past 24 hours. This marks the fourth consecutive day of continuous BTC outflows from exchanges, suggesting potential buying pressure that could drive further upside momentum.
However, traders appear to be heavily betting on the short side, with data from Coinglass revealing that traders are over-leveraged at $88,907 on the upper side and $85,813 on the lower side. This indicates that bears are currently dominating the asset, and the price is unlikely to rise above the $88,907 level. At press time, BTC is trading near $86,690, having dropped 1.50% in the past 24 hours. During the same period, its trading volume declined by 10%, indicating lower participation from traders and investors compared to the previous day.
In summary, while there are signs of accumulation by long-term holders, the overall market sentiment remains bearish. The formation of a bearish rising wedge pattern and the current trading below the 200 EMA suggest a potential price decline to $78,700 if BTC fails to hold above the $86,200 level. Traders' heavy short positions further support this bearish outlook, indicating that the price is unlikely to rise significantly in the near term.
Ask Aime: What can I do with my Bitcoin investment as the market is volatile and experts predict a potential decline?
