Bitcoin Slumps Under $85K; Coinbase Premium Negative 21 Days
Bitcoin price plunged below the critical $85,000 level, briefly touching $81,000 in a sharp weekly sell-off that closed beneath the 50-week moving average. On-chain data from CoinGlass reveals the Coinbase Bitcoin Premium Index has remained negative for 21 straight days, signaling sustained sell pressure from US spot traders and indicating capitulation among short-term holders.
The weekly chart shows expanding red candles and dominant selling volume, confirming bearish momentum. Key support now sits at the 100-week moving average near $80,000; a close below this could open the path to the 200-week moving average. To stem further losses and avoid a prolonged bear phase, Bitcoin must quickly reclaim the $90,000 mark.
While some analysts view extended negative premiums and capitulation as late-cycle cleanses that precede strong recoveries, the breakdown below a year-long uptrend and prevailing US investor bearishness underscore near-term risks for traders.
Bearish
The news points to a clear bearish outlook. Bitcoin’s break below $85,000 and sustained 21-day negative Coinbase Premium confirm mounting sell pressure from US spot traders and capitulation among short-term holders. Historical parallels show that prolonged negative premiums and weekly closes below major moving averages often coincide with deeper corrections. The failure to hold the 50-week and potential breach of the 100-week moving average near $80,000 suggests further downside risk in the short term. While extended capitulation can precede a late-cycle bottom, traders should remain cautious until Bitcoin reclaims key levels like $90,000 or demonstrates renewed buying interest. The combination of technical breakdown and negative on-chain sentiment makes a bearish scenario more likely for both immediate market behavior and medium-term positioning.