Bitcoin Faces One of Its Most Alarming Monthly Candles in a Decade

Bitcoin’s monthly chart is flashing one of the most troubling signals the market has seen in over ten years. After briefly breaking above the $130,000 mark, BTC has sharply reversed toward the mid-$80,000 range, forming a massive bearish monthly candle that threatens to wipe out nearly the entire 2025 uptrend. For long-term holders, this kind of dramatic reversal forces a critical question: is this merely a violent shakeout in an ongoing bull cycle, or has Bitcoin already topped for this market cycle?

A decline of roughly 23% from all-time-high levels is highly unusual for Bitcoin, especially on a monthly timeframe. Historically, deep corrections have occurred only after a bull market fully completed its parabolic expansion. This cycle feels different — Bitcoin had just begun to accelerate before the momentum abruptly broke, suggesting the structural support behind the narrative may not have been as solid heading into Q4 as many believed.

The technical picture is equally concerning. BTC is now at risk of closing the month below the 2021 peak zone, which acted as a key support during the early phase of the new cycle. Losing this level would open the door to the next major support cluster between $70,000 and $72,000, an area aligned with the 20-month EMA and a previous consolidation range. A monthly close below that zone would effectively erase two years of bullish structure. The critical threshold — the true “line in the sand” — sits near $60,000.

Momentum indicators also paint a bearish outlook. The monthly RSI is rolling over from overheated conditions, typically signaling exhaustion rather than continuation. Volume patterns reinforce the reversal: weak on the way up, heavy on the way down — a classic hallmark of trend exhaustion.

As uncertainty grows, crypto investors are watching closely to determine whether this dramatic candle marks a temporary reset or a long-term shift in market direction.