Bitcoin Loses Bull Market Support Band as Analysts Eye $81K Bear Market Threshold

Source: CoinEdition Original Title: Bitcoin Loses Bull Market Support Band as Analysts Eye $81K Bear Market Threshold Original Link: https://coinedition.com/bitcoin-loses-bull-market-support-band-as-analysts-eye-81k-bear-market-threshold/

Current Market Status

Bitcoin trades around $87,000 after losing its Bull Market Support Band, a technical level that has supported price action throughout the current cycle. The breakdown has created a $20,000 gap between current price and the support structure that previously contained corrections.

Bitcoin has dropped 8.5% over the past seven days, 18% over 14 days, 21.8% over 30 days, and 11.4% over one year. The multi-timeframe weakness shows sustained selling pressure across short and medium-term periods.

Critical Moving Averages Define Threshold

Analyst Ali warned that Bitcoin has typically entered bear markets after falling below the 730-day simple moving average. That level currently sits around $81,250, approximately $5,750 below current prices. A break below this threshold would confirm bear market conditions according to historical patterns.

Daan Crypto Trades noted that Bitcoin has fully lost its bull market support band, the structure that had roughly supported price throughout the cycle, with a few smaller deviations below. However, the recent move down created over a $20,000 gap to reclaim the band.

According to Daan, at some point these two levels will meet each other again and create a key area to watch. For now, the chart confirms what participants already know: BTC lost its structure and experienced a large downturn.

Weekly market structure remains technically intact as long as April lows are defended. This provides a final line of defense before more severe technical damage occurs to the longer-term trend structure.

Near-term Range Possibilities Emerge

Rekt Capital noted that Bitcoin has grabbed liquidity at the early March and late April 2025 historical demand area and is now on the cusp of performing a weekly close above it. A weekly close above $86,000 could enable price to revisit $93,000 as there is little in the way of support or resistance within this region.

If the price rejects at $93,000, that could mark the start of a weekly range between $86,000 and $93,000. This range scenario would provide consolidation after the recent sharp decline from levels above $100,000.

Key Takeaway

The loss of the Bull Market Support Band is a structural breakdown that typically precedes extended corrections or bear market conditions. Whether Bitcoin can reclaim this level quickly or requires months of consolidation determines if the current cycle remains intact.

The $81,250 level at the 730-day SMA is the critical threshold separating correction from bear market, according to Ali’s historical analysis. Defending this level while attempting to reclaim the Bull Market Support Band over $100,000 will determine Bitcoin’s trajectory heading into year-end.