After failing to hold above the six-figure mark, BTC has accelerated lower, triggering heavy distribution across centralized exchanges and pushing momentum indicators into deeply oversold territory.
Despite the sharp sell-off, higher-timeframe charts suggest that a major technical inflection point is approaching. Analysts now point to the 55,000-58,000 dollar range on the monthly chart as a potential bottoming zone if selling pressure begins to fade.
On the monthly timeframe, several key technical factors align in the 55K-58K region. Most notably, the MA50 sits directly within that range, historically acting as a broad-cycle support that “covers all” during deeper retracements.
In addition, the lower boundary of Bitcoin’s long-term ascending channel converges in the same area. This trendline has defined the broader bull structure for years, and each prior touch has led to significant upside reactions. Adding to the confluence is a major horizontal support level that previously absorbed heavy selling pressure.
Importantly, during 2024, large clusters of buy orders were recorded near this same zone. That liquidity memory could once again play a role if price revisits the area.
Cumulative Volume Delta data suggests roughly 2.5 billion dollars in net market sells since February 20 across centralized exchanges. This reflects broad distribution rather than isolated liquidation events. Historically, breakouts tend to fail when sustained net selling pressure persists.
Until this selling momentum slows, upside attempts may continue to fade.
The monthly RSI has dropped toward oversold levels, while MACD momentum remains negative. Fear indicators are approaching extreme readings. Historically, deep pessimism has often formed during major bottoms, but timing remains uncertain.
Bitcoin corrections of 70-80 percent have occurred in every major cycle. While the current drawdown is far smaller so far, volatility clusters tend to expand during transitional phases between bull and consolidation regimes.
If BTC stabilizes between 58K and 55K and buyers step in near the MA50 and channel support, the structure of the long-term uptrend could remain intact. A strong defense of that zone would reinforce the broader bullish thesis.
However, a decisive monthly close below 55K would weaken the technical picture and open the door to deeper retracement levels.
For now, Bitcoin sits at a critical crossroads – with one of the strongest multi-factor support zones in its current cycle just below price. Whether that level holds may define the trajectory for the remainder of 2026.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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