By Chris Hollingworth 
Bitcoin (BTC) experienced a significant rebound of up to 14% after dropping to a four-month low near $76,600 on March 11. Despite this recovery, the BTC price remains down approximately 25% from its all-time high of around $110,000, which is a common occurrence in a “bull market correction.” However, there are concerns among analysts that the declines in Bitcoin’s price may persist in the future.
The recent bearish pressure on Bitcoin has been highlighted by a “dark cloud cover” pattern, signaling a potential topping out of the cryptocurrency. This pattern occurs when a strong green candle is followed by a red candle that opens above the previous close but closes below the midpoint of the first candle’s body, indicating a shift in sentiment from buyers to sellers.
Bitcoin’s failure to close within the $90,000-$93,000 resistance zone suggests a lack of buying conviction, further reinforcing the bearish outlook. Analysts suggest that unless Bitcoin can decisively break above this range, it is likely to remain under pressure.
Another factor contributing to the potential decline in Bitcoin’s price is the rejection it faced after testing the $86,000-$88,000 zone as resistance. The failure to sustain above this level has increased the probability of a drop towards lower support levels, with a potential move towards the $65,000-$74,000 area by April if key support zones are breached.
Analysts have also pointed out the tight correlation between Bitcoin and traditional equity markets like the S&P 500 and Nasdaq 100, both of which are displaying bear flag patterns on their charts. A bear flag pattern typically resolves with a price drop if the lower trendline support is breached, potentially leading to a deeper sell-off in Bitcoin.
Additionally, the broader decline in risk-on sentiment, influenced by factors such as global trade tensions, has further heightened Bitcoin’s correlation with equities. The possibility of a US recession has been identified as one of the external risks that could impact the crypto market, according to Arthur Breitman, the co-founder of Tezos.
