BTC Drops Below $89K as Bearish Candle Pattern Signals Weakness

Bitcoin’s price action this week reveals growing bearish momentum, with a doji candle closing pattern on Sunday suggesting significant indecision and potential reversal. At $88.85K, the cryptocurrency has retreated from last week’s peak near the $94,000 resistance zone, closing the previous week at $90,891. The emergence of this bearish candle formation indicates weakening buyer commitment and rising seller control heading into the new trading week.

Current Market Sentiment Turns Bearish on Doji Candle Signal

The recent price action tells a cautionary story for bulls. After several attempts to surge past the $94,000 resistance level, buyers lost conviction and the candle closed on a bearish tone with the doji formation. This candlestick pattern—which closes near its opening price—signals indecision in the market and typically precedes downward pressure. Market participants are now positioning for potential losses, with bears clearly in control of momentum. The shooting star candle that formed last week further compounds this bearish outlook, characterized by the strong rejection of higher prices that manifested as a long wick to the upside.

Critical Support and Resistance Zones Under Pressure

Bitcoin currently faces a testing scenario at key technical levels. The immediate support sits at $87,000, where bulls must mount a defense to prevent further deterioration. If this level fails to hold, the next significant support checkpoint appears at $84,000. A breach of the $84,000 zone would likely accelerate selling pressure, potentially driving price action down to the low $70,000 range, with $68,000 representing a critical floor. Should that barrier crumble, the 0.618 Fibonacci retracement level at $58,000 becomes the ultimate refuge for buyers seeking to stabilize the market.

On the upside, bears are defending the $91,400 resistance level in the short term. The $94,000 resistance has proven effective at rejecting rallies multiple times, but faces serious threats if bullish momentum reignites. Beyond $94,000 lies a broader resistance zone extending from $98,000 to $103,500. Further overhead, another significant resistance band stretches from $106,000 to $109,000, which aligns with the 0.618 Fibonacci retracement level calculated from the drop from previous highs to $80,000.

This Week’s Price Outlook and Trading Levels

Bears appear positioned to control this week’s narrative. Early-week trading may see selling pressure attempt to drive price through the $87,000 support level. Bulls will need to demonstrate renewed strength to prevent a daily close below this critical threshold. If bears successfully close one or more days below $87,000, the $84,000 support will face heavy scrutiny, and buyers will require substantial volume to stabilize the market once more.

The near-term market mood remains decidedly bearish. The combination of the weekly shooting star doji candle close and fading momentum suggests bulls lack the follow-through necessary for upward breakouts. However, price action may trade sideways within the $84,000 to $94,000 range over the next several weeks, creating a neutral zone where neither side maintains firm control.

Understanding Key Technical Indicators

Doji Candle: A candlestick formation that closes at approximately the same level it opened, representing market indecision. When this candle appears after an uptrend, it often signals a potential reversal as bulls lose conviction.

Shooting Star Candle: This pattern occurs after an uptrend and features a long upper wick above the candle body with minimal lower wick—indicating strong selling pressure at higher prices and potential trend reversal.

Support Level: The price point where buying interest typically emerges, preventing further declines. Repeated touches on the same support level weaken its effectiveness over time.

Resistance Level: The opposite of support—a price level where selling pressure typically emerges. Like support, resistance weakens with multiple tests.

Fibonacci Retracement: Technical analysis tool based on the golden ratio (1.618 and 0.618), used to identify potential price reversal zones following significant moves.

Market Path Forward

Bitcoin’s current candle formation and price structure suggest buyers need a close above $94,000 to break out of the current range and regain momentum. Conversely, bears require a close below $84,000 to establish a bearish breakdown. Until one of these boundaries breaks decisively, traders should expect choppy, range-bound price action. The $87,000 level will serve as this week’s critical battleground, determining whether bearish momentum accelerates or bulls manage to stabilize the decline.