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Bitcoin has fallen below $96k as $BTC miners offload over 2,000 $BTC. Will Bitcoin drop below the crucial support at $94,500?
Over the past 24 hours, Bitcoin has shown little movement, currently trading at $95,657, reflecting a 0.67% drop.
However, the market has experienced over $200 million in liquidations, with long-side traders losing $134.34 million. As pressure mounts on the bulls, will Bitcoin dip below its key support at $94,500? Let’s take a closer look.
Bitcoin Price Analysis Puts Focus at $94,393
In the 4-hour price chart, the Bitcoin price trend reveals a bullish failure to cross above local resistance. Along with the resistance trendline, $BTC faces constant rejection from the 50% Fibonacci level at $98,611.
The ongoing pullback from the resistance zone is approaching the 23.60% Fibonacci level, which is a critical support at $94,393.
Before the recent rejection, Bitcoin’s price action showed potential for a rounding-bottom reversal, supported by the 23.60% Fibonacci level. However, a retest of this support could weaken the chances of a reversal and put more pressure on the level.
This could significantly increase the likelihood of a downward trend. Despite this, technical indicators are leaning slightly bullish.
The True Strength Indicator (TSI) has reached oversold territory, suggesting a possible reversal. Additionally, the Stochastic RSI has shown a positive crossover, with the lines moving out of the oversold region.
Bitcoin Miners Show Signs of Weak Confidence
As Bitcoin struggles to take a bullish reversal, Bitcoin miners have reflected a drop in confidence.
According to a recent post by Ali Martinez on X, Bitcoin miners have offloaded more than 2,000 $BTC in the past week. The Bitcoin miner reserve has dropped from 1.8104 million on February 10 to 1.8089 million this week.
Will Bitcoin Price Fall To $90k?
With the decline in Bitcoin’s miner reserve, the increased supply could exert additional downward pressure on $BTC. If institutional buying doesn’t pick up, Bitcoin may break below the 23.60% Fibonacci level at $94,393.
This could lead to a retest of the $90,775 horizontal support level. On a more optimistic note, if U.S. spot ETFs show strength this week, a breakout above the overhead trendline could push Bitcoin to the 50% Fibonacci level at $98,611.