People borrowing money to trade BTC should be cautious! Technical indicators show that the bears are in control and the decline is still ongoing.

The current BTC price hovers around $70.51K, with only a 0.68% increase over the past 24 hours. Behind this stalemate is an intense battle between bulls and bears. Many investors who borrowed money to enter the market may be regretting it now, as the technical signals are very clear — bears still hold the dominant position.

Technical Indicators Show a Full Bearish Downtrend, Confirmed Across Multiple Timeframes

From various timeframes, BTC’s predicament is quite evident.

Daily chart shows pervasive resistance. The 5, 10, and 20-day moving averages act like shackles, tightly constraining the price. The MACD remains below zero, with the green bars shrinking but not yet turning red. The RSI hovers near 22.5, indicating an oversold condition, which suggests aggressive selling. Investors who borrowed to go long have no breathing room on the daily chart — the price is being completely suppressed by the bears.

On the 4-hour chart, rebounds repeatedly fail. Every attempt to bounce back to the 5-day moving average is met with resistance. These repeated failures shake the confidence of those who borrowed to participate. Although the MACD has not yet formed a golden cross, the overall pattern remains bearish. In this timeframe, going long is like betting on a small chance of a rebound with borrowed money.

The 1-hour chart shows interesting consolidation. Price swings between $70,000 and $71,500, with the MACD showing a weak bullish crossover but lacking strength, and RSI oscillating around 35, indicating a fragile balance between bulls and bears. While this small range might offer some trading opportunities in the short term, betting with borrowed funds here carries high risk.

The 15-minute chart exhibits chaotic fluctuations. Frequent surges and dips without a clear direction reflect a market waiting for liquidation and a lack of conviction.

Margin Liquidations Highlight the Risks

Market news further exacerbates this technical weakness.

Billions of dollars were liquidated overnight. Many leveraged longs were forcibly closed. This wave of liquidations is like pouring cold water on an overheated market — those who chased higher with leverage and borrowed capital are being ruthlessly shaken out. This explains why prices have fallen sharply but rebounds remain weak — the bullish force has been significantly diminished.

Changing Federal Reserve policies have raised concerns about future interest rate moves. If the Fed adopts a more hawkish stance, liquidity will tighten further, which is a nightmare for leveraged traders — rising interest costs accelerate capital erosion.

Worries about large institutions are also mounting. Companies like MicroStrategy, which borrowed heavily to buy Bitcoin, continue to buy to stabilize morale, but markets remain concerned about forced liquidations of these big players. Such fears alone can scare off new entrants trying to buy the dip with borrowed money.

Caution Advised for Borrowed Positions — A Guide to Steady Trading

What should you do now? The core message is: The overall downtrend is confirmed, and those borrowing to participate need to be extremely cautious.

For investors with borrowed funds eager to trade: Do not act now. Although the small range on the 1-hour chart ($70,000–$71,500) might offer a short-term trading opportunity, approaching the resistance at $71,500 (4-hour resistance level) with a small short position could be considered. But remember — trading short-term with borrowed money is like playing with fire; risks are greatly amplified. If you choose to trade, set your stop-loss above $71,800. For potential rebounds near support at $70,000, consider long positions with a stop-loss below $69,500. The key is to take profits quickly and avoid holding on too long.

For conservative traders (the most recommended approach): Observe more, trade less, and avoid participating unless clear reversal signals appear. The main trend remains downward, so riding the trend is the smartest move. Patience is key: wait for a rebound to around $71,500–$72,000. If there’s a rejection or low volume on the rally, consider light short positions targeting $70,000 initially, with further downside if support breaks.

Important levels to remember: Resistance at $71,800–$72,000 is the short-term rebound line; a volume breakout above this could signal a shift in the short-term downtrend. Support lies at $69,500–$68,500; if broken, further declines are likely.

Finally, a reminder to all leveraged traders: interest costs are eating into your profits, and risks are magnifying your potential losses. In this market environment, preserving your capital is more important than chasing profits.