The recent price movement of Bitcoin suggests mounting pressure as the asset is unable to hold a position above the psychologically significant $100,000 level.
Bitcoin looks to be in a vulnerable position right now with possible downside risks looming at its current price of $97,154.
The short-term ascending trendline on the chart has been broken, indicating waning bullish momentum.
This action has drawn attention to Bitcoin's next support level, which is approximately $93,000.
The 50 EMA is a crucial technical indicator that frequently acts as a dynamic support level during corrective phases, and this area corresponds with it.
Selling activity has increased as a result of the market's sentiment being dampened by the inability to sustain $100,000.
The increasing volume that accompanies the price drop supports the bearish thesis even more and raises the prospect of a more significant correction soon.
The 100 EMA and 200 EMA or $83,000 and $74,000, respectively, would be the next crucial levels to keep an eye on if Bitcoin is unable to find solid support at $93,000.
However, there is still potential for a recovery because the RSI is still above oversold territory.
Bitcoin would have to reclaim $100,000 though in order to restore market trust and its bullish momentum.
The direction of the Bitcoin market is also greatly influenced by the larger market.
Bitcoin's future actions are probably going to be strongly correlated with the state of the market as a whole given the macroeconomic uncertainties and the declining volume in the cryptocurrency space.
All eyes are currently on the $93,000 mark. While a breach could increase selling pressure, a strong defense of this support could open the door for a recovery.
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