Bitcoin is trading at $95,700 at press time, showing a small drop over the last 24 hours. Over the past week, it has lost nearly 10% in value.
Meanwhile, the asset failed to break above a major resistance level, which some traders now view as a turning point. The recent price action has raised concerns about the short-term direction of the market.
Key Resistance Rejects Breakout Attempt
Bitcoin was recently rejected at a long-term trendline that has stopped rallies before. This level has now caused a 26% drop from the local high. Analyst Rekt Capital noted that the resistance “was at best the absolute local top or at worst the Bull Market peak.” The rejection suggests that the trendline remains a strong barrier to upward momentum, which had shown signs of weakening over time, but the latest move signals a possible shift.
“What initially seemed like a weakening resistance has actually strengthened in rejection power,” Rekt Capital added.
The failure to break through this area has left the market vulnerable to further downside.
50-Week EMA Under Threat
The 50-week Exponential Moving Average is a widely watched level. Bitcoin is now trading below it, and a weekly close beneath this line could signal a breakdown in trend. Rekt Capital commented, “There’s a high probability the Weekly Candle Closes below the 50-week EMA,” which could open the door to more selling pressure in the weeks ahead.
A close below the EMA suggests that bullish support is weakening. If the price cannot recover quickly, traders may shift focus toward lower support levels. The next few weekly closes will be key to understanding where the market stands.
Exchange Inflows Raise Red Flags
Investor behavior has changed in recent days. As we recently reported, more than $1 billion worth of Bitcoin has been sent to exchanges in three days. This often suggests traders are preparing to sell. Despite positive updates from the US-China trade discussions, the price still moved lower.
Some market analysts believe the recent drop was expected, while others warn the market hasn’t found a bottom yet. A few have pointed to $74,000 as a possible target if current support levels do not hold.
Mixed Signals for the Week Ahead
Market trader Daan Crypto Trades pointed out that Bitcoin has mostly stayed near its CME close price, which is typical for weekends. “It’s been rare to get a large move during a weekend the past few months,” the trader noted. For now, there has been no strong buying to lift prices.
Michaël van de Poppe said that Bitcoin sweeping the low could be a setup for a reversal.
“If that happens, then there’s trillions and trillions of short liquidity ready to be taken out,” he said.
He added that holding above $94,000 could lead to a move back to $100,000.
The coming week is likely to bring more movement. Bitcoin will need to hold current support and attract buyers to avoid a deeper slide.