Bear Alert for Bitcoin (BTC): Is $90K in Danger Again?

Bitcoin has recently seen a downturn, struggling to maintain its value above key support levels. The market sentiment remains weak, prompting concerns about a potential drop to $90,000. This article will explore the latest trends in Bitcoin's price movements and the indicators that suggest where BTC is headed next.

Key Takeaways

Bitcoin (BTC) fell to a daily low of $90,620.73 amidst weak market sentiment.
At present, BTC is trading at approximately $91,229.63, representing a 2.11% drop.
The market witnessed a trading volume of $35.38 billion and liquidations totaling $116.32 million.
Technical indicators suggest growing bearish pressure, which could lead to further declines.
A potential reversal in momentum might see Bitcoin rise to resistance levels around $91.3K.

Bear Alert for Bitcoin (BTC): Is $90K in Danger Again?

Recent Market Behavior of Bitcoin

Bitcoin began the day trading at $93,358.98, but quickly declined to a low of $90,620.73 due to concerns about market sentiment. Currently, Bitcoin has dropped 2.11% and is priced at $91,229.63, with a 24-hour trading volume falling to $35.38 billion. Additionally, the market has experienced liquidations worth $116.32 million.

This downward trend has resulted in the formation of a red candlestick, pushing prices toward the support zone around $91,149. If losses continue, we might witness a bearish trend strengthen, potentially leading to a "death cross" pattern where short-term averages fall below long-term ones, causing prices to dip even further.

However, if there is a shift in market momentum, we could see Bitcoin prices improve, rising to immediate resistance at approximately $91.3K. Should bullish sentiments prevail, the price could break through this level and possibly revisit previous highs.

Analyzing Bitcoin's Charts for Bearish Pressure

Current indicators show increasing bearish pressure on Bitcoin. The Moving Average Convergence Divergence (MACD) and signal lines are both below the zero line, indicating that bearish momentum is dominant. BTC is trading below its long-term average, and any short-term price jumps are likely to be corrective unless the MACD crosses back above zero.

BTC chart (Source: TradingView)

The Chaikin Money Flow (CMF) indicator, currently at -0.02, points to slight selling pressure in the Bitcoin market. Although capital outflows are minimal, the bears hold a slight advantage, which indicates uncertainty rather than robust bearish momentum.

Moreover, Bitcoin's daily Relative Strength Index (RSI) stands at 28.45, indicating oversold conditions. Intense selling pressure has been observed, though a short-term price rebound may still happen. The Bull Bear Power (BBP) for BTC is at -3,851.14, suggesting that bears remain strong against bullish efforts. Unless this figure begins to rise above zero, the prevailing downtrend is likely to continue.

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