Bitcoin pauses at $82,000... Unable to break through, will the bull market end?

▲ Bitcoin (BTC), cryptocurrency wallet/ChatGPT generated image

Bitcoin (BTC)'s recovery rally has begun to stall just below a key long-term resistance level. After a sharp rebound from its March lows, Bitcoin recovered its 50-day and 100-day moving averages, but its upward momentum was blocked near the falling 200-day moving average in the $82,000 range.

U.Today analyzed that Bitcoin is showing a rejection pattern near the 200-day moving average, weakening the market's bullish confidence. The 200-day moving average is often used as a benchmark to distinguish between long-term bull and bear markets, so failure to break this level has more significance than just short-term resistance.

For the bullish argument to gain traction, Bitcoin needed to clearly break above the 200-day moving average. However, the price failed to definitively move above this level, and a rejection candle formed as upward momentum slowed. This is interpreted as a sign that buying pressure was not strong enough to break through the long-term resistance.

Warning signs also appeared in the chart structure. Bitcoin is currently forming a rising wedge pattern, and rising wedges that appear during a correctional phase often resolve downwards if trading volume decreases during the ascent. The Relative Strength Index (RSI) remains at a high level, but it was assessed as not strong enough to support a sustained breakout.

However, Bitcoin's structure has not completely collapsed. The price is still holding above an important short-term support level near the 50-day moving average. For this reason, the short-term upward structure is barely being maintained, but it is clear that the market's strong upward momentum is weakening.

The key is whether the upward support trendline can be maintained. If Bitcoin loses this trendline, selling pressure could quickly target the 100-day moving average. In this scenario, not only Bitcoin but also the broader altcoin market could face downward pressure, according to analysis.

For the bullish scenario to remain intact, Bitcoin needs to move above the 200-day moving average with increased trading volume and then hold that price level. Unless this confirmation signal appears, the recent rebound is more likely to be seen as a temporary rebound within a longer correctional phase rather than the start of a new upward segment within a bull market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*