**Bitcoin Hits Critical Support Levels Amid Decline**
Bitcoin’s recent drop has brought it to a pivotal technical point as it tests crucial support levels after breaking out from a multi-week upward channel. While short-term momentum appears weak, long-term on-chain metrics could determine whether the correction continues or if buyers will return.
### Technical Analysis
**By Edris Derakhshi**
#### Daily Chart Insights
On the daily chart, Bitcoin has fallen below the 200-day moving average, near $88K, a key trend indicator. This follows weeks of sideways to downward movement with several rejections at the $88K–$92K resistance zone. Currently, Bitcoin is around $77K–$78K, just above a strong demand zone near $74K. The RSI is nearing oversold territory, indicating bearish momentum but also potential fatigue. If $74K doesn’t hold, the next support is $68K, while a rebound above $80K could lead to another test of $84K and a return to the 200-day moving average.
#### 4-Hour Chart Overview
The 4-hour chart highlights the recent breakdown. After weeks in a rising channel, Bitcoin broke lower, triggering liquidations and fear. The price dipped to $74K before bouncing back to test $80K, which resulted in a lower high, reinforcing short-term bearish control. Although the RSI is recovering from oversold levels, the structure favors sellers unless Bitcoin reclaims $80K and the $82K–$84K zone.
### On-Chain Analysis
**By Edris Derakhshi**
#### Adjusted SOPR (aSOPR – EMA 30)
The Adjusted SOPR is slightly above neutral at 1.1, indicating average profits for holders, but the downward trend suggests shrinking profitability. If the aSOPR approaches or falls below 1, it could signal growing capitulation and bearish sentiment. Currently, the market hasn’t fully realized losses, leaving room for more downside before a potential bottom. Monitoring aSOPR stabilization is crucial, as holding above one could support a rebound, while a drop below may indicate broader risk-off behavior.
