Bitcoin’s sharp selloff this week indicates that the latest rebound has possibly already run its course, suggesting that medium-term correction is entering another downward phase. The move follows a difficult November, when Bitcoin posted its largest monthly decline since mid-2021 as a record volume of capital exited the market. Momentum remains soft, and technical structure points to further pressure ahead.
Sentiment deteriorated further on Monday after Strategy — the largest corporate holder of Bitcoin — cut its earnings outlook for 2025, citing Bitcoin’s weak performance. More broadly, Bitcoin appears to be suffering from fading enthusiasm within both the digital-asset community and the wider tech sector, where concerns about market concentration, infrastructure constraints, and slowing global cooperation are resurfacing.
Technically, the near-term rebound from 80,492 looks to have topped at 93,074. Retest of 80,492 is now the immediate focus, and firm break would resume the entire decline from 126,289. In any case, outlook will stays firmly bearish as long as 55 D EMA (now at 99,564) holds.
In the bigger picture, Bitcoin is clearly correcting the full five-wave uptrend from the 15,452 (2022 low). While further decline is expected, the 70,000 psychological region is expected to provide strong initial support for an interim base. That aligns with several structural levels: 74,373 support, 73,812 former resistance-turned-support, and 50% retracement of 15,452 to 126,289 at 70,870. This cluster reinforces the area’s importance in defining the medium-term floor.
Meanwhile sustained break back above the 55 W EMA (now at 97,447), would indicate that the medium-term correction from 126,289 has already shifted into a second leg, opening the door for a more sustained rebound. Until then, price risks remain skewed to the downside as the market digests weakening sentiment and tightening technical conditions.
