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.