- Bitcoin struggles below $88K resistance as a descending trendline and bearish patterns point to rising downside pressure.
- A break under $81K could trigger heavy selling, with volatility high and technicals showing weakness despite strong historical support.
- Market sentiment remains bearish with swing traders eyeing CME shorts, expecting deeper lows if key levels fail to hold.
According to popular analyst Peter Brandt, Bitcoin (BTC) continues to trade under a bearish structure, facing strong resistance near $88,765.43. Currently, it trades at $83,227.72 on April 5. The digital asset remains locked within a descending trendline, consistently rejecting price advances since February. Additionally, key support at $81,134.66 has held firm despite repeated tests.
Descending Trendline Limits Upside Potential
Since February, Bitcoin has struggled to break above the diagonal resistance line. Price action has remained constrained below this trendline, reinforcing a bearish outlook. The presence of multiple support levels indicates strong buying interest. However, sellers continue to dominate, preventing any sustained recovery.
Moreover, Bitcoin formed an “H” pattern in March when it dropped to nearly $75,000. This structure signals further downside risk if support fails. An impending breakout in either direction is suggested by the market’s consolidation within a narrowing range. But given the obvious downward trend, a break below $81,134.66 would lead to more selling pressure.
Technical Indicators Suggest Continued Weakness
Moving averages further confirm Bitcoin’s weak position. A faster-moving average recently crossed below a slower-moving one, reinforcing the bearish sentiment. Additionally, the average true range (ATR) stands at 47.53, indicating heightened volatility. Long wicks on recent daily candles highlight strong rejection at lower prices, but buyers have failed to reclaim critical levels.
Notably, the chart also hints at a potential head and shoulders pattern near $88,765.43. This classic bearish formation suggests Bitcoin could face continued downside movement if it fails to reclaim higher resistance levels.
Market Outlook and Future Scenarios
Bitcoin’s price action suggests traders should remain cautious. If the $81,134.66 support breaks, Bitcoin could test lower levels, potentially revisiting March’s lows. On the other hand, a breakout above resistance at $88,765.43 could shift momentum, paving the way for a stronger recovery.
Swing trader Peter Brandt is eyeing short positions via CME futures below $81,100, factoring in adjusted ATR. He avoids shorting spot markets, citing counterparty risks. His strategy aligns with the bearish structure, expecting further downside if key support cracks.
