Bitcoin (BTC) Market Update

Bitcoin (BTC) has experienced a decline this week. Although the situation isn’t causing panic, technical indicators suggest potentially significant hurdles for bulls if selling pressure persists.

Bollinger Bands Analysis

To assess the scenario, we can use the widely known Bollinger Bands, which define the upper and lower limits of price volatility. Currently, the lower bounds are not where many would expect.

On the daily timeframe, Bitcoin has fallen below its 20-day average—the middle of the band—initially offering support around $118,100. Losing this support isn’t devastating by itself, but it moves the focus toward the lower boundary, estimated at approximately $116,300.

If the market situation doesn’t improve soon, this could be the first significant test. In a more severe downturn, prices might approach $112,000, aligned with the outer limits of expected volatility.

Broader Perspectives

The weekly and monthly charts present a longer-term view. The lower weekly band sits around $76,000. This level doesn’t imply Bitcoin will drop there imminently; rather, the structure accommodates potential declines without altering the broader outlook.

Looking at Monthly Charts

On the monthly chart, the midline (often indicates the long-term median trend) stands near $77,000 per BTC, while the lower Bollinger band, significantly lower than present levels, is around $35,000. This figure represents the potential technical bottom in case of a drastic market downturn.

The bands do not dictate the direction but rather outline the range. The space beneath Bitcoin is more extensive than many expect.

In summary, this is not a caution but a reminder that if support levels continue to break, potential price stops are already identified.