Market Analysis: Bitcoin’s Critical Support Test
Bitcoin (BTC) is struggling to maintain momentum after dropping to $85,211, with technical indicators suggesting the flagship cryptocurrency could face further downside pressure. Recent analysis warning of a potential drop to $63K appears increasingly prescient as bulls fail to mount a convincing recovery.
Technical Outlook Remains Bearish
The current price action shows concerning signs for Bitcoin bulls:
- Price trading below the crucial 100-day Simple Moving Average (SMA)
- MACD indicator showing bearish divergence
- Key resistance at $93,257 proving difficult to overcome
- Weak buying pressure despite oversold conditions
Critical Support Levels to Watch
If the current support at $85,211 fails to hold, Bitcoin could test several key levels:
- First Support: $73,919
- Secondary Support: $65,082
- Major Resistance: $93,257
Market Implications
The current market structure suggests Bitcoin’s recovery attempts may face significant headwinds. Trading volume remains relatively low, indicating hesitation among market participants. Institutional investors appear to be taking a wait-and-see approach, further contributing to the lackluster price action.
Expert Perspectives
Technical analyst Michael van de Poppe suggests, ‘Bitcoin needs to reclaim $93,257 quickly to avoid a deeper correction. The longer price action remains below this level, the higher the probability of testing lower support zones.’
Source: NewsBTC