Bitcoin is currently struggling to maintain its position above $95,000, sparking discussions of a potential market correction. With the 100-day moving average (MA) at $91,700 acting as a crucial support level, the question remains: can Bitcoin hold steady, or will it drop to $87,600? Here’s a closer look at the market’s current state and technical indicators.
Bitcoin’s Current Market Performance
As per CoinMarketCap data, Bitcoin is up 1.36% in the past 24 hours and 1.51% over the last week. However, these gains follow a turbulent week, where BTC dropped 7.17% before closing the week with a 0.72% loss. This lack of sustained bullish momentum has left traders and investors concerned.
Bitcoin recently hit a new all-time high of $99,660 but faced rejection, falling to a low of $91,770. The 100-day MA helped it bounce back, but the weakening momentum is evident in the formation of doji candles. Currently trading at $95,800, BTC finds support from both the 100-day and 50-day MAs on the 4-hour chart. Whether these levels can withstand the selling pressure remains uncertain.
Technical Indicators Signal Weakness
- RSI (Relative Strength Index): The RSI has dropped below 50, sitting at 47.04, indicating weakening bullish momentum.
- ADX (Average Directional Index): The trend strength indicator is at 15.57, signaling a lack of upward momentum.
- Liquidity Heatmap: Liquidity data shows a significant gap above the current price but a dense cluster of buy orders below, suggesting traders expect further corrections.
Market Sentiment and Liquidations
Bitcoin’s quarterly returns stand at an impressive 51.04%, but liquidation data from Coinglass shows that over 161,000 traders lost $405.21 million in the past 24 hours, with long positions taking the brunt.
Outlook for Bitcoin
Bitcoin’s path to $100K seems stalled as market strength wanes. Consolidation appears likely unless new liquidity flows into the market. The holiday season could increase selling pressure, leading to profit-taking and a possible drop to $87,600. On the flip side, institutional support could trigger significant buying, reigniting the rally.
The next few days will reveal whether Bitcoin can hold above critical support levels or succumb to bearish pressure. Until then, the market watches and waits.
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This is no financial advice. Includes third party opinion.