The cryptocurrency market faced renewed downward pressure as Bitcoin (BTC) dipped below $105,000, sparking a broader correction. Sentiment weakened across the board, with meme coins like FARTCOIN, SPX6900, and established assets such as Algorand (ALGO) posting significant losses. This pullback reflects growing technical vulnerabilities and a shift in momentum after weeks of consolidation.
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Bitcoin Retreats Into Technical Downtrend
Bitcoin’s recent move below $106,000 marked the second consecutive bearish daily candle, signaling weakening bullish momentum. The price structure since May has formed a series of lower highs on May 23, June 11, and June 30—establishing a clear resistance trendline that caps upside potential.
A descending channel pattern is now visible on the BTC/USDT daily chart, bounded by a resistance line connecting June 5 and June 22 highs and a dynamic support line drawn from May 12, June 5, and June 22 closing prices. A sustained break within this channel could push BTC toward the psychological $100,000 level at the lower boundary.
However, a key support zone around $102,315—established during mid-May consolidation—remains critical. This area may absorb selling pressure and serve as a foundation for a potential bullish reversal if buying interest returns. Traders are closely monitoring volume patterns and on-chain metrics for early signs of accumulation.
Despite short-term weakness, long-term fundamentals remain intact, with institutional inflows and growing adoption supporting the underlying value proposition of Bitcoin.
FARTCOIN at Risk of Breaking Down From Bearish Pattern
FARTCOIN saw a minor 0.50% rebound on Wednesday but remains under pressure after a sharp 10% drop the previous day. The decline completed a bearish evening star pattern—a reversal signal composed of a long green candle on Sunday, a doji or small-bodied candle on Monday, and a strong red candle on Tuesday.
This pattern emerged within a larger descending triangle formation. Resistance is defined by a downward-sloping trendline connecting highs from May 23, June 12, and Monday’s peak. Support rests at $0.92, marked by the June 7 low. With the evening star forming near resistance, FARTCOIN is now testing the triangle’s lower boundary.
A close below $0.92 could trigger accelerated selling, potentially extending losses toward $0.71—the April 18 low. This would confirm a breakdown and invalidate any near-term bullish structure.
Technical indicators offer mixed signals. The MACD (Moving Average Convergence Divergence) has been generating false signals due to volatility but recently showed red histogram bars rising from the zero line—hinting at renewed downside momentum. Meanwhile, the RSI (Relative Strength Index) hovers near 46, close to the neutral midpoint, suggesting indecision in market sentiment.
On the upside, a sustained move above the psychological $1.00 level could spark a relief rally toward $1.14—the upper trendline of the triangle—providing temporary bullish validation.
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Frequently Asked Questions
Q: What is a descending triangle pattern?
A: A descending triangle is a bearish continuation or reversal pattern characterized by a flat support level and a declining resistance line. It typically signals accumulation before a breakdown, especially when confirmed by volume.
Q: Why is FARTCOIN so volatile?
A: As a meme coin with limited utility and high speculation, FARTCOIN is extremely sensitive to market sentiment, social media trends, and broader crypto movements—especially Bitcoin’s direction.
Q: What happens if FARTCOIN breaks below $0.92?
A: A confirmed close below $0.92 increases the likelihood of a drop to $0.71, representing nearly a 23% further decline from current levels.
SPX6900 Faces Downside Pressure After Double Top Formation
SPX6900 declined another 1% on Wednesday, extending losses into a third consecutive session. The downturn accelerated after a bearish reversal from $1.33 on Monday—matching the previous high on June 25—to form a classic double top pattern.
The breakdown occurred below the neckline at $1.15, confirming bearish momentum. Price is now approaching the 50% Fibonacci retracement level at $1.02, calculated from the January 19 high ($1.80) to the March 11 low ($0.25). A decisive close below $1.02 could open the door to further declines toward $0.91—the June 21 low.
The MACD indicator reinforces the bearish outlook. Both the MACD line and signal line have dipped below zero, while red histogram bars continue to expand—indicating growing downward momentum.
Despite this, the RSI sits around 45, remaining in neutral territory. This suggests that while selling pressure dominates, oversold conditions haven’t yet triggered strong buying interest.
For bulls to regain control, SPX must reclaim the $1.15 neckline with strong volume. A confirmed close above this level could invalidate the double top and pave the way for a retest of $1.33.
Algorand Loses Ground Amid Failed Breakout Attempt
Algorand (ALGO) posted a small recovery of 0.35% on Wednesday following a steep 7.82% drop the prior day. The decline marked another lower high under a descending resistance trendline drawn from May 11 and May 23 closing highs—indicating persistent selling pressure.
If ALGO closes below Friday’s low of $0.1691, downside momentum could accelerate toward $0.1518—the June low—representing roughly a 10% drop from current levels.
The MACD shows weakening bullish momentum, with shrinking green histogram bars. Traders should watch for a potential death cross—when the MACD line crosses below its signal line—as a confirmation of renewed selling pressure.
The RSI stands at 43, holding just below the neutral 50 level. This reflects ongoing difficulty in overcoming bearish sentiment despite occasional bounce attempts.
To shift bias back toward bullish territory, Algorand needs a strong close above $0.1830—the current resistance trendline. Until then, the path of least resistance remains downward.
Frequently Asked Questions
Q: What is a double top pattern?
A: A double top is a bearish reversal pattern where price tests a resistance level twice but fails to break higher, followed by a drop below the neckline—signaling trend exhaustion.
Q: Is Algorand still a viable long-term investment?
A: While short-term price action appears weak, Algorand’s fundamentals—including scalability, low fees, and active development—remain relevant in the smart contract ecosystem.
Q: How reliable are Fibonacci retracement levels?
A: Fibonacci levels are widely watched by traders and often act as self-fulfilling support/resistance zones. The 50% level is particularly significant due to its psychological weight.
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With Bitcoin guiding broader market sentiment and key altcoins facing technical breakdowns, caution remains warranted. Traders should focus on risk management and wait for confirmation of new support levels before entering positions.
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