Bearish is the current Bitcoin market condition after BTC breaks through the key support zone

The ongoing selling pressure continues to weigh on Bitcoin, pushing prices beyond key resistance zones and creating a defensive market sentiment. Bearish is the term that perfectly describes the current market condition—where expectations of price declines dominate every investor decision. BTC is now trading well below $80,000, reflecting a significant shift in broader market dynamics.

Bitcoin Price Plummets, Major Support Levels Fail to Hold

After losing more than 6% in the last session, Bitcoin was pushed toward $77,600, hitting its lowest point in ten months. Recent data shows the price has continued its decline to $66.42K, down 1.92% in the past 24 hours, indicating persistent selling momentum. The rejection of a recovery above $80,000 is concerning, especially considering this level previously acted as a strong support. The loss of this significant resistance zone—including the actual market average around $80,700—has reinforced bearish expectations among market participants.

Technical Pattern Turns Bearish: 21-Week EMA Breaks

The most critical technical warning signal came when Bitcoin broke below the 21-week exponential moving average, a level historically often preceding large-scale bearish phases. Analysis from Rekt Capital indicates that the current price movement is repeating a cycle seen before. Since the last EMA crossover, Bitcoin has declined approximately 17%, from $90,000 down to $78,000. A similar crossover pattern previously occurred in April 2022, followed by a prolonged bearish decline over several months.

Downside Targets: From $74,400 to Sub-$50K in Traders’ Radar

The rapid shift in sentiment has led traders to identify deeper liquidity zones below the current support level. Some analyses point to $74,400 as the next resistance level, while more extreme bearish targets suggest $49,180 if selling pressure persists and no significant buying emerges to halt the decline. This swift change in market expectations highlights how fragile buyer confidence currently is, with each support level broken opening the door to further downside.

CME Gap at $84K May Offer Short-Term Rebound

Although technical structures indicate a strong bearish bias, some traders are still watching the CME futures gap near $84,000. Historically, this gap has often acted as a price magnet in the short term, and BTC may rebound toward that zone in the coming weeks. However, such a rebound is likely to be temporary and unsustainable unless buyers manage to reclaim key support levels and shift overall market momentum.

On-Chain Data Signals Prolonged Bearish Phase

Recent research from CryptoQuant shows increasingly clear warning signals through on-chain data. Bitcoin is now trading below the realized price of investors who have held BTC for 12 to 18 months—a historically significant indicator often marking the transition from a normal correction to a structural bearish regime. The realized price now acts as resistance, meaning rallies are likely to fail as coin holders sell at their breakeven points. The combination of prices below average cost, negative profitability, and slowing activity growth aligns with prolonged bearish phases seen in past market cycles.

Risk Assessment: Bearish Momentum Still Dominates

Bitcoin has lost critical technical support, key levels continue to be broken, and on-chain indicators show structural weakening. While a short-term rebound toward $84K may occur in the coming weeks, the broader trend remains bearish with dominant selling momentum. Analysts are seriously discussing deeper downside levels, even sub-$50K scenarios if historical patterns continue to repeat as seen in previous market crises. Risk management and awareness of bearish conditions are essential for navigating this volatile market. Stay alert to technical developments. Manage exposure wisely. This is not financial advice.