Bitcoin’s meteoric rise to new all-time highs appears to be losing steam, with multiple technical indicators suggesting a potential correction to the $93,000 level. This analysis comes as BTC recently dropped 4% from its $111K peak, indicating growing bearish pressure in the market.
Technical Analysis Points to Significant Correction
Renowned crypto analyst Burak Kesmeci has identified several concerning signals in Bitcoin’s technical framework that could herald a substantial price decline. The analysis focuses on multiple indicators showing bearish divergence, suggesting that BTC’s recent rally may be running out of momentum.
Key Technical Indicators Raising Red Flags
- RSI reading at 51 points, below the 14-day SMA
- Fixed Range Volume Profile showing heavy resistance at $103,500
- AlphaTrend suggesting potential ‘sell’ signal below $106,269
- ADX indicating strengthening bearish momentum
This bearish outlook aligns with recent market developments, as Bitcoin continues to test critical support levels around $103K. The convergence of these technical signals suggests that traders should prepare for potential downside movement.
Support Levels to Watch
Key support zones have been identified at:
- $103,500 – Current heavy trading zone
- $93,000 – 0.5 Fibonacci retracement level
- $91,800 – FRVP Value Area Low
FAQ Section
What’s causing Bitcoin’s current price weakness?
Multiple technical indicators, including RSI and FRVP, suggest exhaustion in the recent bullish trend, combined with overbought conditions at higher levels.
How low could Bitcoin price go in this correction?
Technical analysis points to potential support levels around $93,000, with the possibility of testing the $91,800 mark in a deeper correction scenario.
What would invalidate this bearish scenario?
A sustained close above $106,269 and reclaiming the $111,000 level would likely invalidate the current bearish outlook.
As the market continues to digest these technical signals, traders should maintain strict risk management practices and watch for potential confirmation of this bearish scenario in the coming days.
