Bitcoin’s Performance Dips Below $91k in Continued Bearish Trend
The cryptocurrency market has started the week with a setback as Bitcoin (BTC), the leading cryptocurrency by market cap, dropped below the critical $91,000 mark. This represents a 1.6% decline in the past 24 hours, with BTC now trading at $90,940.
According to analysts, this bearish performance can be attributed to increasing geopolitical tensions between the United States and Europe, exacerbating investor uncertainty in the market.
Volatility and Technical Weakness Persist
Despite a brief rally above $90k, Bitcoin’s technical structure remains precarious. On-chain analytics reveal a significant reduction in Bitcoin’s volatility, currently at 38%, compared to 54% in November. Dr. Sean Dawson, Head of Research at Derive.xyz, noted, “While markets appear calm on the surface, macro risks are building, and a shift to higher volatility could occur as geopolitical tensions rise.”
The broader market has been positioned for potential weakness in the first half of the year. For instance, open interest in Bitcoin puts expiring in June is concentrated within the $75k-$85k strikes, indicating bearish sentiment in the months ahead.
Market Indicators Point to Further Downside Risks
Currently, Bitcoin is hovering between the $90k-$80k range, and there is a possibility of retesting the $80k support level. Technical indicators underline the market’s bearish sentiment, with the RSI at 41 and the MACD line now in the negative zone. Analysts believe that BTC could dip to $89,000 if sell-offs persist.
However, if Bitcoin successfully holds support at $90,285, it may rebound toward higher resistance levels such as $93,319 in the short term.
How to Navigate the Crypto Market
Given the current bearish indicators, traders and investors may consider diversifying their portfolios to mitigate risks. Utilizing trusted trading platforms can also provide better tools for analysis and decision-making. For beginners or experienced traders, platforms like eToro offer secure trading experiences and advanced features for cryptocurrency investments.
Conclusion
While Bitcoin’s performance over recent weeks indicates a bearish trend, market dynamics could shift rapidly depending on geopolitical developments and economic conditions. Staying informed and leveraging reliable trading tools can help navigate these volatile conditions efficiently.
