{"id":3259,"date":"2026-05-21T20:42:18","date_gmt":"2026-05-21T20:42:18","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=3259"},"modified":"2026-05-21T20:42:18","modified_gmt":"2026-05-21T20:42:18","slug":"bitcoin-faces-risk-of-deeper-decline-after-failing-to-break-key-resistance","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/05\/21\/bitcoin-faces-risk-of-deeper-decline-after-failing-to-break-key-resistance\/","title":{"rendered":"Bitcoin Faces Risk of Deeper Decline After Failing to Break Key Resistance"},"content":{"rendered":"\n
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Bitcoin could be heading toward a sharper decline and potentially new bear market lows after struggling to break through a major resistance level, according to analysts.<\/p>\n\n\n\n

Data from CryptoQuant on Wednesday showed that Bitcoin encountered resistance at its 200 day moving average, raising concerns about a possible trend reversal. Analysts noted that the current setup resembles the pattern seen in March 2022, when Bitcoin rallied 43% before stalling at the same level and eventually moving lower.<\/p>\n\n\n\n

The report stated that overall Bitcoin demand has now shifted into contraction.<\/p>\n\n\n\n

CryptoQuant also revealed that its Bull Score Index dropped from 40 back to an extreme bearish reading of 20. Analysts attributed the decline to weakening stablecoin liquidity and negative price momentum, both of which weakened the broader market signal.<\/p>\n\n\n\n

According to the firm, the latest reading mirrors the deep bear market conditions recorded in February and March, when Bitcoin prices fell toward the $60,000 range. Historically, similar readings have often preceded additional downside movement or prolonged consolidation periods.<\/p>\n\n\n\n

Bitcoin Correction Could Extend Further<\/strong><\/p>\n\n\n\n

Analysts believe that if the correction continues, the $70,000 level could become Bitcoin\u2019s main on chain support target. This level represents the traders\u2019 on chain realized price and has consistently acted as a major turning point throughout the current market cycle.<\/p>\n\n\n\n

They also warned that a break below this level into the $60,000 region could open the door to fresh bear market lows.<\/p>\n\n\n\n

Meanwhile, blockchain analytics platform Glassnode reported that Bitcoin briefly reclaimed the True Market Mean around $78,300 but failed to maintain strength above it. The company added that if previous market cycle patterns repeat, the ongoing correction from recent highs may continue.<\/p>\n\n\n\n

Glassnode noted that a deeper pullback from current levels could ultimately confirm the recent rally as nothing more than a temporary local top within the broader bear market trend. The firm added that this type of structure has appeared several times in earlier cycles and remains the more likely scenario unless Bitcoin can establish sustained upward momentum.<\/p>\n\n\n\n

On Thursday, market intelligence platform Swissblock stated that Bitcoin\u2019s momentum has weakened from its previous peak levels. However, the firm maintained a cautiously bullish stance, explaining that unless momentum deteriorates significantly, the more likely outcome remains consolidation rather than a complete breakdown.<\/p>\n\n\n\n

Crypto Market Outlook<\/strong><\/p>\n\n\n\n

Bitcoin posted gradual gains over the past 24 hours, rising 1.7% from around $76,600 to test the $78,000 level twice during Thursday morning trading in Asia.<\/p>\n\n\n\n

Even so, analysts consider the $78,000 zone a critical resistance level that must be broken quickly for Bitcoin to regain momentum toward $80,000. Current trading volumes and market sentiment suggest the cryptocurrency could once again struggle to move beyond this area.<\/p>\n\n\n\n

Ethereum followed a similar pattern, though Ether remained under bearish pressure below $2,150 at the time of writing.<\/p>\n\n\n\n

Elsewhere in the altcoin market, several assets recorded stronger gains. Hyperliquid and Zcash both surged with double digit gains during the day.#crypto#cryptonewshttps:\/\/coinsignals.net<\/a> https:\/\/t.me\/coinsignalpublic<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin could be heading toward a sharper decline and potentially new bear market lows after struggling to break through a major resistance level, according to analysts....<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3259","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/3259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/comments?post=3259"}],"version-history":[{"count":1,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/3259\/revisions"}],"predecessor-version":[{"id":3261,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/3259\/revisions\/3261"}],"wp:attachment":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/media?parent=3259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/categories?post=3259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/tags?post=3259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}