Bitcoin (BTC) finds itself at a critical juncture as it attempts to stabilize within a key support zone. Recently, the cryptocurrency market has experienced turbulence, largely driven by substantial outflows from Bitcoin exchange-traded funds (ETFs), including significant movements from investment giant BlackRock.
Bitcoin’s Current Support Zone
The BTC price has reacted from the $92,500 to $94,000 Fibonacci golden pocket, offering temporary relief for buyers seeking to defend this level. However, a broader bearish sentiment prevails, keeping the market under pressure. Recent data reveals a jaw-dropping $866 million exiting Bitcoin ETFs last Thursday, followed by another $492 million on Friday. Of this, BlackRock alone contributed $463 million worth of outflows.
Large-scale redemptions such as these create a ripple effect. To meet redemptions, ETF issuers often sell an equivalent amount of Bitcoin, intensifying selling pressure in already hesitant markets.
Technical Indicators Flash Bearish Signals
Bitcoin’s technical charts show warning signs. The weekly SuperTrend indicator has issued its first reversal signal since early 2023. Although not yet confirmed, a weekly close below $96,000 could solidify this bearish shift. Additionally, a bearish divergence in the Relative Strength Index (RSI)—with price forming higher highs while RSI registers lower highs—signals waning strength and limited upward momentum.
BTC has recently fallen below the critical $99,000 to $100,000 range, now acting as a fresh resistance. Attempts to recover are likely to struggle when prices retest this zone. Failure to hold the current support zone of $92,500 to $94,000 could send prices plunging to the next visible support levels between $85,000 and $86,000.
Market Sentiment and Analysis
The broader cryptocurrency market faces headwinds with growing selling pressure, partly influenced by liquidity clustering near the $89,000 mark. Unless Bitcoin can reclaim $100,000 with conviction, analysts expect several weeks of subdued price performance, oscillating between consolidation and potential declines.
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