Bitcoin (BTC) experienced a sharp rebound of 14% after plunging to a four-month low of $76,600 on March 11. However, despite the recovery, BTC remains down approximately 25% from its all-time high of around $110,000—a typical “bull market correction.”
Yet, some analysts suggest the correction may not be over, pointing to bearish technical patterns that indicate a deeper pullback could be on the horizon.
Dark Cloud Cover Signals Bitcoin’s Top Formation
BTC’s recent rejection at $87,470 has reinforced bearish concerns. According to analyst GDXTrader on X, Bitcoin formed a “dark cloud cover” pattern, a bearish candlestick formation that signals a potential trend reversal.
#BITCOIN
— $Trader (@GDXTrader) March 21, 2025
Bitcoin's rejection at descending channel resistance with a dark cloud cover reinforces the prevailing downtrend, signaling continued bearish control.
Since the start of 2025, bulls have struggled to gain traction, failing to break above key resistance levels. The… pic.twitter.com/T0qfItNvGt
This pattern emerges when a strong green candle is followed by a red candle that opens above the previous close but closes below the midpoint of the first candle. This shift in sentiment suggests that buyers attempted to push prices higher but were ultimately overpowered by sellers.
GDXTrader emphasized that Bitcoin must decisively break above the $90,000-$93,000 resistance zone to invalidate the bearish outlook. Until then, downward pressure is expected to persist.
BTC Price Risks a Drop to $65,000
Popular trader CrediBULL Crypto warns that Bitcoin’s failure to sustain gains above $86,000-$88,000 could pave the way for a deeper correction. The analyst highlights a “perfect rejection” at this supply zone, increasing the likelihood of a retest of the $77,000-$79,000 support region.
A perfect rejection so far. $BTC https://t.co/Y0Ks5RUIRA pic.twitter.com/X8voZwO4jR
— CrediBULL Crypto (@CredibleCrypto) March 20, 2025
Should Bitcoin fail to hold this level, a further decline toward $65,000-$74,000 is possible by April, aligning with the larger liquidity zone highlighted in recent technical analyses.
Bear Flag Pattern Adds to Bearish Outlook
Crypto analyst CryptOpus points out that Bitcoin remains closely correlated with traditional equity markets, particularly the S&P 500 and Nasdaq 100, both of which are exhibiting bear flag patterns.
It's hard to stay #bullish when all you see is weakness across the board. $BTC follows stocks in this nasty bear flag formation!
— CryptOpus (@ImCryptOpus) March 21, 2025
So far no signs of de-correlation, so if $SPX breaks down, $BTC will follow. $84k level remains key!#crypto pic.twitter.com/0UufD619w0
A bear flag occurs when an asset consolidates within an upward-sloping channel after a steep decline, ultimately breaking downward to continue the original trend. With BTC currently testing $84,000 as lower trendline support, a breakdown could trigger a further drop to $72,000.
Macroeconomic Pressures Weigh on Crypto Markets
Adding to Bitcoin’s woes, broader macroeconomic factors, including the ongoing risk-off sentiment driven by global trade tensions under U.S. President Donald Trump, have heightened selling pressure.
Tezos co-founder Arthur Breitman has also warned that a potential U.S. recession remains one of the biggest external risks facing the crypto market. If equities continue to decline, Bitcoin may struggle to find bullish momentum in the short term.
Also Read: Bitcoin Reclaims $85K as Fed Slows QT: Is the Rally Sustainable?
With multiple bearish indicators aligning, Bitcoin traders remain cautious, with key support levels crucial in determining BTC’s next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
