Shocking Bitcoin Plunge: Is $65,000 the New Bottom or Just a Temporary Pit Stop?

Ah, dear reader, gather ’round as we delve into the perplexing and oftentimes bewildering world of Bitcoin, that most enigmatic of currencies! It seems our beloved Bitcoin is experiencing a rather unfortunate malaise, having been unceremoniously rejected at the lofty heights of channel resistance. This has led to a most alarming probability that it may soon descend into the abyss of $65,000, a level that many have deemed a bastion of support-if such things can be called bastions at all!

Bitcoin suffered a rejection at that ever-elusive channel high resistance, unleashing a veritable torrent of downside momentum.
Our valiant midpoint of the range has been lost, akin to a ship lost at sea, on a weekly closing basis.
The fabled $65,000 channel low, coupled with the illustrious 200-week moving average, now looms large as key targets in this downward spiral.

Alas, Bitcoin finds itself entering a critical phase-though one might argue it is more critical than a cat caught in a tree. The higher-time-frame structure weakens, and after a decisive failure at the upper boundary of a long-standing trading channel, it seems we are witnessing an impulsive corrective move reshaping our weekly outlook. What a delightful spectacle!

The loss of key levels has shifted momentum firmly in favor of sellers, those merry harbingers of doom, increasing the likelihood that Bitcoin will rotate lower toward the fabled structural support. With the weekly trend donning its bearish cloak, the scenario of further descent toward the channel low becomes increasingly tantalizing.

Bitcoin’s Technical Adventures

Channel high rejection confirmed: A true spectacle, as price was rejected precisely at long-term resistance, much like a guest at a party being turned away at the door.
Range midpoint lost on a closing basis: A signal of structural weakness, perhaps akin to a soldier losing their sword in battle.
$65,000 channel low in focus: A convergence zone with the 200-week moving average, where many hopes and dreams may converge-or collide!

Oh, how the decline began-with a clean rejection at the range high, a level that has long served as a price ceiling. Sellers, those industrious creatures, pounced with vigor, triggering a rapid bearish expansion from resistance, as if they had just discovered a new form of excitement!

This rejection was no mere whisper; it roared like a lion, producing strong downside momentum that suggests our rally into resistance was but a fleeting corrective dance rather than the herald of a new bullish era. Indeed, this reaction has set the stage for our current descent.

The Midpoint’s Fall

Following the rejection, Bitcoin whimsically rotated toward the range midpoint-a spot often fought over by buyers and sellers alike. Yet, to our dismay, this critical level has now been lost on a closing basis, further diminishing the bullish case. Such drama!

With this closing below the midpoint, control has evidently shifted back to sellers. The path ahead appears treacherous, as price now seeks to explore the deeper recesses of this range. From a market structure perspective, this loss indeed confirms that our corrective move has ample room to develop, unlike a hasty resolution.

The Shift to Bearish Trends

As price fails to reclaim key levels, the weekly trend has officially donned its bearish attire. Bitcoin now prints consecutive lower highs and lower lows-a classic sign of a downtrend. Thus, as long as this structure remains intact, any rallies we witness are likely to be mere corrective blips, sold into with glee rather than sustained.

This structural shift increases the probability that our current decline is not a fleeting hiccup, but rather part of a more extensive corrective phase within the grand tapestry of the larger channel.

The Allure of $65,000

Now, the next major technical objective emerges at the channel low near $65,000-a level that represents long-term structural support, often likened to a safety net for those daring enough to tread these tumultuous waters. Given the prevailing bearish momentum, price appears increasingly attracted to this area, much like moths to a flame-or perhaps more accurately, like Bitcoin to chaos!

Markets, it seems, possess a curious tendency to gravitate toward well-defined levels, especially when intermediate support crumbles under pressure. In this context, $65,000 acts as a seductive magnet for price, where liquidity, historical demand, and long-term positioning converge in a delightful swirl of uncertainty.

200-Week Moving Average: The Wise Old Sage

Adding to the significance of the $65,000 region, we find the venerable 200-week moving average-the wise old sage of Bitcoin’s long-term trend analysis. Historically, retests of this average have coincided with major cycle bottoms or extended consolidation phases, leading us to wonder if we might soon witness such a phenomenon again.

While this does not guarantee an immediate reversal, it certainly suggests that a base-building process is likely once price reaches this zone. Such bases, however, often take time to mature, replete with volatility and sideways movement-a far cry from the sharp V-shaped recoveries we all dream of!

Correction: Not Quite the End

It is imperative to distinguish between a deep correction and a complete breakdown of Bitcoin’s long-term thesis. Even within the broader bullish cycles, Bitcoin has been known to experience significant drawdowns, resetting structure and sentiment before embarking on the next grand expansion phase.

From a higher-time-frame perspective, a move toward $65,000 would still align with Bitcoin’s storied history, particularly considering the protracted period price has spent dancing within this large structural channel.

Anticipating Future Price Action

As it stands, Bitcoin remains entrenched in a bearish corrective phase for as long as price lingers below the range midpoint, continuing to print lower highs on the weekly timeframe. The odds favor continued downside rotation toward the $65,000 channel low support, where the wise 200-week moving average may offer a stabilizing influence.

Until that coveted region is reached and structure improves, any rallies are likely to face the steely gaze of selling pressure. The coming weeks will undoubtedly be defined by whether Bitcoin completes this corrective move and begins to form a robust long-term base, or whether bearish momentum accelerates further before any semblance of support can be established.

2026-01-30 16:24