Bears on the Prowl: Is Bitcoin (BTC) Facing 2021-Like Bear Market Conditions?

Bitcoin's price is under significant pressure, dropping over 2.1% and breaking through crucial support levels. The cryptocurrency's current trading environment shows similarities to its performance in 2021, raising concerns about possible further declines.

Key Takeaways

Bitcoin's value has decreased by over 2.1%, settling around $87,409.
Daily trading volume has surged by more than 70.13%, amounting to $45.22 billion.
A total liquidation of $103.77 million worth of Bitcoin occurred in the last 24 hours.
The price movement echoes patterns observed in 2021, potentially indicating further corrections.
Key resistance and support levels could determine the next price trends for Bitcoin.

Bears on the Prowl: Is Bitcoin (BTC) Facing 2021-Like Bear Market Conditions?

Main Content

Bitcoin has recently experienced a price decline exceeding 2.1%, falling through important support levels. The day began with Bitcoin trading at a high of $90,501, but a bearish trend quickly drove the price down to approximately $87,061. If bearish momentum continues to escalate, further declines could be expected.

As of this writing, Bitcoin's price is around $87,409, with daily trading volume jumping over 70.13%, reaching $45.22 billion. Coinglass data reports that Bitcoin's market saw liquidations totaling $103.77 million in the past 24 hours.

Analysis of the Bitcoin chart reveals that the current price movements reflect those of its 2021 cycle. Back in 2021, Bitcoin reached a peak near $69,000 before undergoing a rapid correction. In 2025, after hitting approximately $126,000, Bitcoin's recent trading pattern seems to mirror this earlier cycle, characterized by strong rallies, waning momentum, and a potential breakdown zone forming.

Assessing the Risk of a Major Pullback

Bitcoin continues to trade within a bearish phase, and it might drop towards the support level of $87.5K. Should this downward correction gain strength, a 'death cross' could emerge, which would likely allow bears to drive the price further down, possibly below $87,435.

On the flip side, if the trend reverses and gains upward momentum, Bitcoin could rise to the initial resistance at around $87.7K. Sustained bullish pressure could lead to the formation of a 'golden cross', potentially pushing prices towards $87,869 or higher.

BTC chart (Source: TradingView)

Currently, Bitcoin's Moving Average Convergence Divergence (MACD) line is below the signal line, highlighting the prevailing bearish sentiment. A widening gap between these two lines indicates stronger bearish pressure. The Chaikin Money Flow (CMF) indicator shows a reading of 0.02, suggesting mild buying interest, with capital inflows slightly outpacing outflows, indicating weak accumulation.

Bitcoin’s Bull Bear Power (BBP) reading stands at -1,470.76, reflecting strong bearish control, as prices remain below this level. This suggests significant selling pressure and limited participation from buyers. Furthermore, the daily Relative Strength Index (RSI) is currently at 45.31, which implies a neutral to slightly bearish outlook. If the RSI climbs above 50, it may signal an upward trend, while a drop towards 30 would indicate increasing bearish pressure.

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