Bitcoin (BTC) begins the week on a bearish note, trading at $93,390 after a 1.71% decline on Sunday. With rising liquidations and tightening bearish pressure, Bitcoin hovers precariously near the critical $93,000 support level, raising concerns about a potential drop to $90,742.
Here’s a detailed breakdown of Bitcoin’s price action, market conditions, and potential scenarios for the days ahead.
Current Market Overview
Key Metrics
- Current Price: $93,390
- Market Capitalization: $1.84 trillion
- 24-Hour Liquidations: $167.94 million
Bitcoin’s price reflects increased bearish activity, with significant liquidations indicating heightened volatility. This comes amidst institutional outflows from Bitcoin spot ETFs in the U.S., which totaled $387.54 million last week, breaking a three-week bullish streak.
Bitcoin Price Analysis
4-Hour Chart Highlights
- Failed Bullish Breakout:
- Bitcoin failed to breach the $99,514 resistance level, reversing at the 100 SMA line.
- The reversal has driven BTC back towards the $93,000 psychological support level.
- Doji Formations:
- Doji candlesticks near $93,000 suggest attempts to absorb selling pressure.
- However, a series of lower highs raises the likelihood of a breakdown rally.
- Bearish SMA Crossover:
- A potential bearish crossover between the 100 and 200 SMA lines is forming, signaling further downside risks.
- RSI Divergence:
- A minor bullish divergence in the RSI hints at temporary relief, though momentum remains bearish.
Institutional Activity
Institutional support has weakened:
- Outflows: U.S. Bitcoin spot ETFs witnessed net outflows of $297.75 million, reversing prior bullish trends.
- Impact: Reduced institutional participation could amplify price volatility and bearish sentiment.
BTC Price Targets
Bearish Scenario
If Bitcoin closes below $92,654, the likelihood of testing the $90,742 support level increases significantly.
- A break below $90,742 could trigger further bearish sentiment, potentially opening the door to lower price levels.
Bullish Scenario
Conversely, if Bitcoin sustains a reversal:
- A move above the 50 SMA line at $95,647 could indicate recovery.
- A close above $95,647 would pave the way for Bitcoin to retest the $99,514 resistance level and approach the $100k psychological milestone.
Bitcoin’s current price action suggests heightened bearish risks, with critical support at $93,000 being tested. The potential for a breakdown to $90,742 remains high, especially if institutional outflows persist and liquidations rise. However, a bullish reversal near the 50 SMA line could restore upward momentum.
Investors should closely monitor Bitcoin’s price movement around key levels, as the coming days will be pivotal in determining whether BTC breaks down further or stages a recovery.
