Bitcoin has lost an important milestone, the risk of entering a prolonged sideways phase.
After the latest sharp drop of Bitcoin, analyst Joao Wedson provided a detailed assessment of the market developments.
He believes that BTC losing the threshold of 89,800 USD is a clear sign of the weakness he warned about earlier.
According to Wedson, the inability of prices to maintain important on-chain support levels further reinforces the likelihood that the market will enter a prolonged sideways phase, rather than recovering immediately.
Expert warning: Losing 86,500 USD will open a new bottom
In his analysis, Wedson revealed that he had opened a short position near the recent local peak, as part of a pre-prepared trading strategy based on scenarios.
He emphasized that what matters is not the outcome of a single trade, but long-term consistency:
"The deciding factor is not a single winning or losing trade, but rather profits consistently outperforming mistakes over time."
The analyst also pointed out two key price levels:
If Bitcoin breaks below 86,500 USD, the downward trend will accelerate.
At that point, the level of 80,500 USD is very likely to be breached, forming a new local bottom.
Selling pressure remains heavy, the market is extremely fragile
At the time of reporting, Bitcoin was trading around 88,430 USD, indicating the market remains vulnerable.
Selling pressure continues to dominate, with a drop of 2.90% in one hour and 4.40% in 24 hours.
The current downward momentum is making market sentiment cautious, as investors wait to see whether BTC will hold key support levels or continue to slide deeper in the coming days.
