With the breakdown of a long-standing support trendline, could the price of Bitcoin (BTC) slip to the $90K level before 2025?
The crypto space witnessed a massive supply dump as the U.S. markets experienced a free fall. Amid the crash, Bitcoin’s price fell below $100,000 and tested a crucial level.
With market liquidations surging, bears are firmly in control. Will this bearish market result in a decline in Bitcoin prices to the $90,000 support level?
Bitcoin (BTC) Price Analysis
On the 4-hour chart, BTC’s price action shows a bearish breakdown of a long-term support trendline. This breakdown is accompanied by a 4-hour bearish engulfing candle, accounting for a 3.5% drop.
Compared to its recent all-time high of $108,364, Bitcoin’s price has dropped by 10.68%. Currently, the price of a single Bitcoin is $96,796. Amid the crash, BTC registered a 2.77% decline yesterday. Furthermore, the residual bearish momentum led to an intraday drop of 0.60%.
The breakdown rally tests the 200-EMA line on the 4-hour chart. However, as dynamic support holds the free-falling Bitcoin prices, incoming supply warns of a bearish continuation.
Additionally, the 20-EMA and 50-EMA lines on the 4-hour chart have given a bearish crossover, signaling a short-term trend reversal. Even the 4-hour RSI line has entered the overbought zone, reflecting a significant increase in selling pressure.
Bitcoin ETFs See Biggest Outflow Ever
As Bitcoin’s price slides to $96,000, institutional support takes a hit, with a net daily outflow of $680 million. WisdomTree was the only Bitcoin ETF recording an inflow of $2.05 million, while most ETFs experienced outflows.
Leading the bearish trend, Fidelity dumped $208 million worth of Bitcoin, followed by Grayscale with an outflow of $188 million, and ARK and 21Shares with a combined outflow of $108.835 million. This turn of events comes after several consecutive days of inflows.
Notably, Thursday’s $680 million outflow marked the largest negative flow in Bitcoin ETF history.
Will Bitcoin Drop to $90k?
In conclusion, as institutional support declines, increasing supply pressure and uncertainty in the U.S. market have resulted in a crypto market crash.
Under such conditions, Bitcoin’s price is likely to test the $90,000 support level before potentially making a bullish comeback. In the event of a bullish turnaround from the 200-EMA line, and if the market stabilizes, the uptrend could face resistance near the $100,000 psychological level.
On the bearish side, based on technical and Fibonacci levels, the immediate support below the dynamic line stands at $94,670 and $90,733.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
