Last weekend, I stared at the daily chart of Bitcoin for a long time, and that feeling was a bit uncomfortable. A complete head and shoulders top pattern is forming right in front of me, which, in my years of market observation, is quite a rare and strong bearish signal.

Speaking of which, this round of correction has already been quite painful. From the all-time high of $126,000 at the beginning of the year, it has fallen all the way to around $85,000 now, erasing the gains that were hard to accumulate. The upward trend line that supported us for many months has also been ruthlessly broken.

Now Bitcoin is stuck at the $85,000 level, and the market sentiment is particularly bearish. From a technical perspective alone, the short-term trend line support has been broken, the price is hovering below the key moving averages, the MACD indicator has long been in the bearish zone below the zero line, and it’s accelerating downward. These signals are all present.

What’s more concerning is the funding situation. The data indicates that long-term holders are selling off at a pace rarely seen in recent years. Imagine that even the US spot Bitcoin ETFs are experiencing continuous net outflows, and institutional demand is clearly weakening. This is not just a technical correction; real money is talking.

The key support zone now is between $84,000 and $85,000. Honestly, this has become a critical point that will determine the next market direction. If this level is effectively broken, there may be less support below. If the market cannot hold here, the subsequent risks will be significant.