Bitcoin Market Pressure: Identifying the Three Signal Points Before Adding to Your Position

Recently, the cryptocurrency market has experienced significant pressure. Bitcoin, which previously reached its peak in January, has now undergone a sharp correction approaching the $68,980 level. In various communities, negative sentiment dominates—some are pessimistic about a return to $50,000, while others keep asking: “When will the recovery momentum actually come?” As an experienced market analyst, today we will not discuss speculative macro theories, but focus on practical technical aspects: where are the actual ideal buying zones? And what should be the reference points before adding to positions?

Why Does This Drop Feel So Extreme?

The current market structure can be described by one dominant phenomenon: massive liquidity pressure. Three main factors contribute to creating this condition:

First, large institutions are taking profits. Data shows that Bitcoin ETFs have experienced net outflows of over $11 billion in recent days. When big players start unloading positions, retail investors still hoping for an “endless bull run” will fall far behind. This creates ongoing pressure.

Second, market sentiment indicators are already in extreme zones. The Fear & Greed Index has dropped to the “extreme fear” level around 20. Historically, when everyone is shouting “don’t buy!”, that’s precisely when opportunities begin to form. This psychological zone is very important to understand.

Third, key support levels have been broken. After the psychological defense line of $85,000 failed to hold, the market immediately dropped toward the $78,000–$75,000 zone. This is a classic pattern: break level → seek new support → volume pressure → form a bottom.

Three Technical Indicators Showing Potential for Recovery

If you want to buy at the bottom, you can’t rely solely on intuition. The market always gives clear signals through technical indicators. Here are the three most important points to monitor:

First Signal: RSI Divergence on Longer Timeframes
RSI (Relative Strength Index) on 4-hour and daily timeframes is approaching the 30 level, a classic oversold zone. But an important note: if prices continue to make new lows while RSI does not make lower lows, this is called bullish divergence—one of the most reliable conditions for predicting a reversal. Such divergences almost always precede a significant bounce. This is the first point in our analysis framework.

Second Signal: Decreasing Volume During the Downtrend
Currently, the decline is accompanied by relatively high volume, indicating liquidation is still ongoing. However, when you see a decline with volume dropping sharply, it’s a sign that selling power is waning. Momentum of the sell-off is diminishing. Seller momentum is starting to exhaust. This point is the second indicator that the bottom is near.

Third Signal: Retracement to Key Resistance Level
The $85,150 level is the battleground between bullish and bearish forces right now. If Bitcoin can retrace and close above this level, the immediate rebound target is around $91,000 or higher. Breaking through this important resistance level is the final confirmation that a reversal has occurred. Identifying these three points forms a solid decision-making framework.

Historical Patterns: What Can We Learn from Past Movements

The cryptocurrency market has an intriguing repetitive nature. Looking back to April 2025, there are striking similarities in structure to today’s conditions.

Back then, Bitcoin also experienced a sharp correction from its peak, touching support around $75,000, then rebounding strongly. The technical pattern is similar: a gradual decline accelerated by high volume at the end—what traders call a “shakeout” or “long position clearing” pattern.

This pattern similarity is important because it shows that the extreme volatility currently happening is actually part of normal market digestion. Usually, after this phase ends and liquidation reaches saturation, big players will start pushing prices higher again for recovery.

Gradual Strategy and Risk Management in Volatile Periods

Given the still uncertain market conditions, here is a more prudent operational guide:

First, enter gradually and systematically. Don’t think about deploying all your funds at a single level. The recommended strategy is to place buy orders gradually at three to four levels: $82,000, $78,000, and $75,000. This way, you won’t regret if the bottom goes lower, and you won’t run out of capital if a bounce occurs faster.

Second, strictly control leverage. In high volatility, even small movements of 3% in Bitcoin can trigger a 10% drop in altcoins with leverage. High leverage positions will be wiped out before the rebound. The survival principle in this market is: survive first, profit later.

Third, watch for resilient altcoins. When the rebound arrives, altcoins that show resilience during the downtrend (such as some coins with strong ecosystems) tend to rebound most sharply. Bitcoin indicates the direction, but altcoins are the drivers of maximum returns.

Conclusion: Value Zones and Emerging Opportunities

Bitcoin is not yet at a “desperate bottom,” but it has entered a significant “value zone.” The $75,000 to $78,000 level represents the “last line of defense” of this correction—if this support holds, the likelihood of reversal increases dramatically.

The recovery momentum will come when the three technical signals above start to align. Don’t rush to add positions before these indicators confirm. Instead, use this moment to prepare your gradual buying strategy. Patience and discipline in action are key to navigating such volatile periods. Monitor our three key indicator points, and your decisions will be much more informed and measured.