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With a bearish start to this week, Bitcoin remains near the $93k support. Will $BTC’s price see an extended correction phase?
Bitcoin has dropped to $93,300, following a bearish Sunday that resulted in a 24-hour decline of 1.71%. At the current market price of $93,390, Bitcoin’s market capitalization stands at $1.84 trillion.
Under the bearish influence on Bitcoin’s price, the crypto market has witnessed liquidations totaling $167.94 million over the past 24 hours. This figure is significantly higher than the typically lower trading volumes observed over weekends.
As liquidations surge, the tightening bearish pressure on the $BTC price trend raises concerns about a potential breakdown. Could this lead to a test of the $90,742 support level?
Bitcoin Price Analysis
On the 4-hour chart, Bitcoin’s price action shows a failed bullish attempt to break above the $99,514 resistance level. This resulted in a bearish reversal from the 100 SMA line, followed by a retest of the critical support near the $93,000 psychological level.
The Doji formations near the support level reflect an attempt to absorb the increased selling pressure. However, the lower-high formation warns of a potential breakdown rally.
Additionally, the failed bullish move has increased the likelihood of a bearish crossover between the 100 and 200 SMA lines. Meanwhile, the 4-hour RSI continues to show a minor bullish divergence.
Institutions Witness Outflows
As $BTC price volatility increases, institutional support continues to fluctuate. Over the past week, Bitcoin spot ETFs in the U.S. saw an outflow of $387.54 million. This broke a streak of three consecutive bullish weeks and ended the week with a net outflow of $297.75 million.
$BTC Price Targets
With institutional inflow declining, the increasing liquidations and high volatility suggest the possibility of a breakdown rally for Bitcoin. If Bitcoin closes strongly below the $92,654 support level, the price is likely to test the $90,742 support.
Conversely, a bullish reversal could push Bitcoin towards the 50 SMA line at $95,647. A close above the 50 SMA could signal a move towards $100k.