- Bitcoin drops over 7%, holding near $85.9K.
- $469.59M in BTC liquidations hit the market.
The crypto market woke up bleeding red as the charts were drenched in red candles. Notably, the market cap has settled at $2.94 trillion, after losing a solid 6.52%. With extreme fear, all digital currencies are in red, bears dominating the screens. Meanwhile, the largest asset, Bitcoin (BTC), has found its narrow bridge to navigate for the last few days.
BTC has failed to escape the consolidation zone and has initially fallen below $95K. Today, it has hovered below $86K, facing rejections. The asset has suffered a hit of over 7.56%, slipping through critical support zones. Bitcoin opened the day trading at around $92,763.01, and the bearish shift has sent the price down to a low of $85,328.44.
Consequently, the asset is going through extreme fear sentiment as the Fear and Greed Index reading rests at 14. Currently, Bitcoin trades within the $85,932.81 zone. Besides, the daily trading volume has surged by over 23.75%, reaching the $99.67 billion mark. The market has experienced a 24-hour liquidation of $469.59 million worth of BTC.
Significantly, the Ali chart exhibits BTC Entity-Adjusted URPD. The $82,045 range stands out as the strongest support zone because a large concentration of Bitcoin last moved at that price. If the asset drops toward that area, strong buying interest is expected, making it a key support in the current market structure.
Could Bears Drag Bitcoin Into Deeper Lows?
Bitcoin’s Moving Average Convergence Divergence (MACD) line has crossed beneath the signal line, showing rising bearish momentum. As both lines are stationed below the zero line, it reinforces the negative outlook. Any potential bounce may be limited unless the indicators begin moving back toward the zero line.
In addition, the Chaikin Money Flow (CMF) indicator found at -0.09 suggests mild selling pressure in the BTC market. The money is flowing out of the asset. With the slight bearish pressure, the sellers have a bit more control, but not strong enough to confirm heavy distribution unless it continues to drop further.
The market crash has pushed Bitcoin into bearish territory, lighting up the red candles. The price has retraced to a crucial support range at $85.8K. If the sellers continue to rule, it would put additional pressure on the downside correction, triggering a further slip to $85.7K.
Assuming the current market trend takes a turn and the buying pressure gains momentum, the Bitcoin price could rise to find the key resistance at the $86.1K level. Upon the upside pressure gaining more traction, the bulls might climb high toward retesting $86.2K or even higher.
The Bull Bear Power (BBP) value of BTC at -6,827.67 signals strong bearish dominance. It likely hints at a downward price action and potential downside to continue unless buying pressure steps in. Furthermore, Bitcoin’s daily Relative Strength Index (RSI) resting at 28.59 implies that the market sentiment is oversold. It points out a weakening momentum and the possibility of a short-term rebound, though not guaranteed.
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