🔥 Key Takeaways
- Bitcoin and Solana have broken below key support levels, exiting the “golden cross” pattern.
- Bullish sentiment is fading as prediction markets adjust their bets.
- Technical indicators suggest further downside risk if key levels are not reclaimed.
- Traders are watching for potential capitulation or a reversal signal.
Bitcoin and Solana Lose Critical Support: A Technical Breakdown
Bitcoin (BTC) and Solana (SOL) have both fallen below crucial support levels, exiting what traders refer to as a “golden cross”—a bullish technical pattern where a short-term moving average crosses above a long-term one. This breakdown signals weakening momentum and has led to a sharp decline in bullish sentiment across prediction markets.
What the Charts Are Saying
For Bitcoin, the loss of the 50-day moving average (MA) and failure to hold above $60,000 has triggered a wave of selling pressure. The next major support zone lies near $55,000, a level that could either act as a springboard for a rebound or confirm further downside if broken.
Solana, meanwhile, has dropped below its 200-day MA, a key long-term trend indicator. The $120 level, previously a strong support area, has now turned into resistance. If SOL fails to reclaim this level, the next downside target could be around $90.
Market Sentiment Shifts
Prediction markets and derivatives traders are rapidly adjusting their positions. Open interest in Bitcoin futures has declined, while put/call ratios are rising, indicating a shift toward bearish hedging strategies. Similarly, Solana’s funding rates have turned negative, suggesting traders are increasingly betting against a quick recovery.
What Comes Next?
The next few days will be critical. If Bitcoin and Solana fail to reclaim their lost support levels, the downtrend could accelerate, potentially leading to deeper corrections. However, if buyers step in at lower levels, a relief rally could materialize. Traders should watch for volume spikes and key resistance retests to gauge market direction.
For now, caution is advised as volatility remains elevated and sentiment continues to sour.
Read Also Epochs
