In brief
- Bitcoin has broken its “golden cross” formation, dropping below the key $90K support level.
- Solana is mimicking BTC’s movements, likewise seeing a breakdown in support with bearish momentum building.
- Traders on the prediction market Myriad are adjusting their prognostications accordingly as previously bullish sentiment drops sharply.
The crypto market is bleeding again. Total market capitalization sits at $3.01 trillion today, down 4.27% over the past 24 hours as Bitcoin and Solana both broke below critical support levels with decisive, heavy-bodied candles—the kind that leave little room for interpretation.
On Myriad, the prediction market built by Decrypt's parent company Dastan, traders are recalibrating fast. The odds for Bitcoin pumping to $100,000 before dumping to $69,000 now stand at 72.5%—down sharply from 85% just yesterday. Meanwhile, 90% of the money betting on a new Solana all-time high before July is saying "no.”
The charts seem to agree with the bears.
Bitcoin (BTC) price: Trendline broken, eyes on $80K
Bitcoin today broke the psychological support of $90K and is trading at $89,208 after shedding 3.62% in the last 14 hours. That means that "golden cross" formation BTC painted on the charts just a few days ago has now been invalidated.
More importantly, the king of crypto has broken below an ascending trendline that had been providing support since the December lows. That dotted white line on the chart below? It's now overhead resistance instead of a floor.
Price support, though, is not established by short-term momentum, but long-term analysis. The Fibonacci levels between the all-time highs and the minimum price reached in late November are a solid reference and have been respected throughout since then.
Bitcoin’s Average Directional Index, or ADX, sits at 30.5, almost 3 points below yesterday’s readings, showing that the bullish bounce is losing steam rapidly. ADX measures trend strength, regardless of direction, on a scale from 0 to 100, with reading above 25 confirming a trend is in place.
The Relative Strength Index, or RSI, is likewise measured on a 0 to 100 scale and gives a sense of momentum, with scores above 70 signally overbought and below 30 oversold. So, with the ADX at 30.5 combined with an RSI of 41.7, the charts are placing Bitcoin in bearish territory without being oversold. The setup would suggest to traders there's room for further downside before any meaningful bounce.
The next major support zone lies near the $80,600 Fibonacci level visible on the daily chart. That's roughly 10% below current prices.
Exponential moving averages, or EMAs, help traders identify trends by taking the average price of an asset over the short, medium, and long term. And Bitcoin’s 200-day EMA (average price of the last 200 days), which typically acts as a line in the sand for longer-term bulls, has already been breached.
When Bitcoin breaks below this level with a candle that has a big body and minimal wicks—exactly what we saw today—it typically signals more pain ahead before buyers step in.
Key levels:
- Resistance
- $91,500 (immediate)
- $98,000 (strong)
- Support
- $86,000 (immediate)
- $80,500 (Fibonacci level).
Solana (SOL) price: Mimicking Bitcoin's breakdown
Solana is following Bitcoin's lead, down 5.06% to $126.61. The chart below shows SOL has also sliced through its 200-day EMA with authority, and the technical indicators are flashing bearish across the board.
The EMA configuration confirms the bearish correction: The 50-day EMA has crossed below the 200-day EMA, canceling the brief trap of a golden cross and sparking risks of resuming a bearish signal that traders call a "death cross." A death cross is formed when the short-term 50-day EMA falls below the longer-term 200-day EMA, signaling bears are in control.
The strongest immediate support for Solana sits around the $117 zone, marked by the dotted line near the current price in the chart above. If that level fails, SOL could be looking at a retest of $100 or even deeper. The Squeeze Momentum Indicator is off but pointing downward, suggesting the selling pressure isn't done.
For context, Solana was trading above $250 back in September. The current price represents a 50% haircut from those highs—and prediction market traders clearly don't expect a recovery anytime soon.
Key levels:
- Resistance
- $140 (major volume zone)
- $150 (immediate)
- Support
- $117 (immediate)
- $100 (psychological).
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.