The answer coming from market strategists this week leans toward the latter. Instead of stabilizing after last month’s sell-off, Bitcoin has continued to bleed momentum. The asset even briefly slipped beneath the $90,000 mark before buyers stepped in — a move that rattled traders not because of the price itself, but because of what it implies: support remains fragile.
Technical Indicators Signal Deeper Weakness
Technical specialists following the trend say the retreat has not run its course. Among them is Fairlead Strategies’ Katie Stockton, who warns that the indicators used to spot bullish reversals are simply not firing yet. BTC may look oversold on paper, but she argues that oversold conditions don’t automatically translate to a bottom — sometimes they signal that weakness is deepening.
Macroeconomic Headwinds Affecting Crypto
Meanwhile, the macro backdrop is doing crypto no favors. Capital is drifting away from speculative narratives and piling into defensive assets as recession worries creep back into the conversation. AI-heavy equities — once the market’s unstoppable engine — have stalled, dragging the S&P 500 into its longest stretch of losses in months. When the broader appetite for risk deteriorates, Bitcoin typically feels it fast.
Key Support Levels to Watch
From a chart perspective, Stockton isn’t focused on the $90K level that grabbed headlines. The real battleground, she says, lies much lower — in the $78,000 to $80,000 region. That zone represents the line between a mid-cycle pullback and a break in the larger uptrend. If bulls defend it, the cyclical bullish structure survives. If they don’t, the narrative changes.
Long-Term Optimism Amidst Short-Term Caution
Interestingly, Stockton doesn’t see the medium-term caution as a contradiction to long-term optimism. The bigger trend still favors higher prices over time, with relatively few technical barriers overhead once momentum eventually rebuilds. It’s just that the transition from correction to recovery rarely happens all at once — and the market may still be in the slow part of that journey.
Current Market Sentiment and Future Outlook
For now, Bitcoin’s rebound to the mid-$93,000s doesn’t settle anything. The correction isn’t invalidated, sentiment remains fragile, and the decisive test — whether support holds where it matters — still lies ahead.