Bitcoin (BTC) is currently showing signs of a potential major price decline as the overall crypto market experiences significant volatility on March 26, 2025. The market has been witnessing major price swings, with gains turning into losses within a short period.
Bitcoin (BTC) Price Action and Technical Analysis
The cryptocurrency market has been experiencing notable price fluctuations in recent days. In late February and early March 2025, the market showed favorable conditions with impressive upside momentum. However, a bearish price action pattern started to form during this period, indicating a potential shift in market sentiment.
Bitcoin (BTC) has also displayed a bearish rising wedge pattern on the four-hour timeframe, according to expert technical analysis. If BTC breaks down from this pattern and closes a four-hour candle below the $86,200 level, there is a high probability that the price could drop by 8.5% to reach $78,700. Currently, BTC is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, suggesting a downtrend in the near term.
$232 Million Worth of BTC Outflow
Despite the uncertain market conditions and bearish price action, whales and long-term holders have been accumulating BTC, as reported by on-chain analytics firm Coinglass. Data indicates a significant outflow of $233 million worth of BTC from exchanges in the past 24 hours, signaling potential accumulation that could lead to buying pressure and drive further upside momentum. This marks the fourth consecutive day of continuous BTC outflows from exchanges.
Traders’ Bearish Outlook
Traders seem to support the current bearish market sentiment, with heavy short positions being favored. Coinglass data reveals that traders are over-leveraged at $88,907 on the upper side and $85,813 on the lower side, with $1.20 billion worth of short positions and $722 million in combined short and long positions. This suggests that bears are currently dominating the asset, and the price is unlikely to rise above the $88,907 level.
Current Price Momentum
At the time of writing, BTC is trading near $86,690, showing a 1.50% decline in the past 24 hours. The trading volume has also decreased by 10% during the same period, indicating reduced participation from traders and investors compared to the previous day.
In conclusion, Bitcoin (BTC) appears to be on the verge of a major price decline, with technical analysis and market data pointing towards a bearish outlook. Traders and investors should closely monitor the price action and key levels to make informed decisions in the volatile cryptocurrency market.