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Analysts are warning of further declines for Bitcoin if support at $91,583 fails, with $85,610 emerging as the next key target.
Bitcoin experienced a sharp downturn today, triggering a broader decline in the crypto market. The leading cryptocurrency has faced heightened selling pressure over the past few days, undermining its attempt to break the $100,000 barrier.
Bitcoin Struggles to Hold Key Support Levels
Over the weekend, Bitcoin showed signs of weakening as its price fell below $98,000 on Saturday and under $96,000 on Sunday. These losses set the stage for Monday’s critical moves.
Despite beginning the day positively and reaching $99,000, Bitcoin failed to maintain upward momentum. Bearish forces quickly intensified, halting progress toward the psychological $100,000 milestone.
At the time of writing, Bitcoin has reached an intraday low of $90,400 but has partially recovered to $92,380.
Meanwhile, market analyst Ali Martinez highlighted $91,583 as a crucial support level for Bitcoin in his analysis. Using a 12-hour chart, Martinez identified key Fibonacci retracement levels and insights from the TD Sequential indicator.
This tool, designed to detect potential trend reversals or exhaustion, pointed to a possible standoff at the $91,583 support. The analyst noted that if this level is breached, Bitcoin could face further declines, with $85,610 emerging as the next significant target.
Technical Indicators Signal Bearish Momentum for BTC
Meanwhile, other technical indicators also provide insight into Bitcoin’s current market momentum, with several pointing to a shift toward bearish trends.
Bitcoin’s relative strength index (RSI) currently stands at 62.36, below the overbought threshold of 70, indicating that BTC is not overbought.
Notably, the RSI recently declined from overbought levels. This decline aligns with broader technical signals pointing to diminishing buying pressure.
The MACD indicator also reinforces the bearish outlook. A bearish crossover has occurred, with the signal line crossing above the MACD line, and the histogram has turned red, signaling negative momentum.
While the red bars are currently small, indicating mild bearish activity, the trend appears to be in its early stages.
Meanwhile, prominent market analysts have reassured crypto enthusiasts that the current Bitcoin pullbacks are typical for an asset in a bull market. Despite the ongoing bearish performance, some analysts have suggested that Bitcoin could still rally to as high as $150,000.