Technical analysis suggests that today’s rise in the Bitcoin rate to $116,353 will be a «dead cat bounce.»
CryptoQuant research analyst AJ Maartun sadly reported that eight out of 8 indicators his firm uses to gauge the strength of a bullish trend are in bearish territory, indicating that the uptrend that began on September 10 is running out of steam and the cryptocurrency price will soon head lower again.
The only indicators that showed a continuation of the bullish trend were the «Demand Level Growth» and the «Technical Signal», which reflects the general metrics of the BTC blockchain. Other indicators, such as the «Profit and Loss», «Network User Activity» and «Realized Value» indices, fell into the red zone.
Bullish Trend Indicators
The last time 8 out of 10 indicators pointed to a decline in the Bitcoin rate was in April 2025. After that, the coin’s value decreased by 16% from $88,637 to $74,029. Therefore, the current positive situation on the market risks turning into a powerful dump.
If a bearish trend emerges, the Bitcoin rate will fall to the first resistance barrier at $112,862, which coincides with the 23,6% Fibonacci level, taking into account the cryptocurrency price pump from $74,638 to $124,517. If this barrier is broken, the asset’s value risks falling to $105,603, where the 38,2% Fibonacci level is located.
Bitcoin Price Likely to Decrease