Bitcoin’s price has been experiencing a massive drop over the past few weeks, and while it initiated a brief recovery recently, the correction is not over yet.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

On the daily chart, the asset has been dropping over the last couple of weeks, breaking below the $92K level and is now testing the 200-day moving average, located around the $83K mark.

If the 200-day moving average is broken to the downside, the entire field will likely experience a much deeper decline, as the bull market will likely be over for at least a few months.

The 4-Hour Chart

Looking at the 4-hour chart, it is evident that the price has corrected all of its recovery as quickly as it bounced, and it is currently at the last resort before a new low likely forms.

The imbalance demonstrated on the chart could be a turning point for the asset, which could lead to a rally above the $92K level once again and even toward the $100K region. However, with the RSI showing clear bearish momentum, it would be more likely for the market to break below the $80K level and create a new low in the short-term.

Sentiment Analysis

By Edris Derakhshi (TradingRage)

Short-Term Holder SOPR

Amid Bitcoin’s price drop over the recent weeks, many investors are panic-selling their BTC at a loss, especially those who got into the market over the past few months. This is clearly visible on the Bitcoin short-term holder SOPR chart, which measures the ratio of profits or losses realized by such market participants.

With the STH SOPR currently showing negative values, short-term investors are clearly realizing losses to prevent bigger ones if the market dips even more. If this selling pressure is not absorbed by potential buyers, it could lead to deeper drops in the coming weeks as the market would overflow with supply.

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Cryptocurrency charts by TradingView.