Bitcoin is stuck in a downward pattern until it breaks higher

Bitcoin has spent the past few months moving lower in a tight range.

Each rebound has been short-lived, meeting resistance before momentum can build. The market is behaving cautiously: buyers appear only when the price attempts to stabilise, while sellers use every weak rally to take profit.

Until that dynamic changes, the tone remains defensive. A decisive break above resistance would signal that the downtrend is reversing; a slip below support would confirm that investors are still retreating rather than returning.

• Bitcoin remains stuck in a downward channel – the so-called waterfall formation – and that is keeping many investors cautious. The first sign of technical strength would be a clean break above $88,556 (line A).
• If bitcoin falls below $80,537, the down trend could accelerate. Price targets on the way down are: $80,000; $79,329; $78,440; $77,398;  $76,200; $75,349; $74,434; and $73,649.
• For short-term traders: a long trade is only worth considering above $88,556 if you believe the waterfall formation is ending. Use $87,378 as a stop-loss to protect capital. Upside targets are: $89,439; $90,435; $91,873; $92,787; $93,489; $94,553; $95,898; $96,782; $97,221; $98,434; $99,349; $100,000.
• For medium- to long-term investors: use the same entry and stop-loss logic, but sentiment is better judged using the 50-day moving average, currently around $104,801.
• When bitcoin trades above its 50-day average, investors tend to be confident and willing to invest. Below it, nerves return, and risk appetite falls.

This is the personal opinion of the writer and must not be taken as financial advice. Frans de Klerk is an independent technical analyst.

_{Top image: Rawpixel/Currency collage.}