Bitcoin is currently navigating a critical support range between $92,500 and $94,000. As of the latest updates, the cryptocurrency is trading slightly above $95,000, reflecting a decline of over 1% in the past 24 hours. Analysts are closely monitoring whether Bitcoin can stabilize in this area or if further weakness will ensue, as prevailing sentiment remains bearish.
Technical Indicators Signal Caution
On the weekly chart, the SuperTrend indicator is on the verge of flipping from bullish to bearish for the first time in years. An analyst noted that the last occurrence of this flip coincided with the onset of the 2022 bear market. If Bitcoin posts a confirmed weekly close below $96,000, it could signal negative momentum for the cryptocurrency over the long term.
In addition, a pronounced bearish divergence between Bitcoin’s price and the Relative Strength Index (RSI) has been developing for nearly a month. This pattern typically indicates that momentum is weakening, making a breakout less likely. Consequently, analysts do not anticipate a rapid recovery to new highs in the immediate future.
Short-Term Outlook and Key Levels to Watch
Despite the bearish trends, indicators suggest that Bitcoin may experience short-term oversold conditions, which could lead to temporary relief rallies. However, experts caution that there is no confirmed bottom at this stage. Should Bitcoin fall below its current support levels, analysts expect the next significant downside target to be in the range of $85,000 to $86,000.
If Bitcoin manages to bounce back, the most formidable resistance level lies between $99,000 and $100,000. This zone previously functioned as support before flipping to resistance. Until Bitcoin successfully reclaims this level, analysts forecast a period of slow, weak, or sideways price movement.
Overall, Bitcoin may remain under pressure for an extended period unless it can recover major resistance levels. The upcoming weekly close around $95,000 is deemed a pivotal moment for determining market direction. Investors and traders are advised to keep a close watch on these developments as they unfold.
