Introduction:
This week hasn’t started on the best note for Bitcoin. The cryptocurrency is stuck near the $93,000 support level, raising the big question: are we about to see an extended price correction?
Right now, Bitcoin is sitting at $93,390 after losing 1.71% over the past day. That puts its market cap at $1.84 trillion—a sobering reminder of Sunday’s bearish turn that set the tone for a cautious start to the week.
What’s Happening in the Market?
The bearish vibes aren’t limited to Bitcoin. Over the past 24 hours, the crypto market saw liquidations hit $167.94 million, a sharp contrast to the typically quiet weekend trading volumes. This sudden spike in liquidations only adds to the pressure Bitcoin’s price is already facing.
Now the big concern is whether Bitcoin will test the next key support level at $90,742. Looking at the 4-hour chart, it’s clear BTC is struggling. An earlier attempt to break above $99,514 fizzled out, triggering a pullback to the critical $93,000 level.
If you’ve been watching the charts closely, you might’ve noticed the Doji candlestick formations near the support. These suggest buyers are trying to hold their ground, but the overall pattern of lower highs signals the bears are still in control.
Trouble on the Technical Front:
Adding to the unease, there’s a chance the 100 SMA and 200 SMA lines could cross in a bearish signal—never a good sign for Bitcoin bulls. On a slightly brighter note, the RSI (Relative Strength Index) on the 4-hour chart shows a small bullish divergence. It’s not a game-changer, but it does offer a sliver of hope.
Institutional Players Are Pulling Back:
Another factor weighing on the market is the shifting behavior of institutional investors. Last week, Bitcoin spot ETFs in the U.S. recorded outflows of $387.54 million, ending a three-week streak of inflows. The net outflow of $297.75 million suggests institutions are growing cautious amid the current volatility.
This pullback, combined with increasing liquidations and market turbulence, makes a bearish breakdown more likely. If Bitcoin closes below the $92,654 support level, we could see it test $90,742 soon.
Could a Recovery Be on the Horizon?
It’s not all doom and gloom, though. A strong bounce back could change the narrative. If Bitcoin climbs above the 50 SMA line at $95,647, it might pave the way for a run towards $100,000. For that to happen, though, the market needs a serious push from buyers.
For now, everyone is watching those key levels. Will Bitcoin hold its ground or slip further? Only time will tell, but one thing is certain—volatility is here to stay.
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