- Bitcoin risks deeper losses if $94,500 support fails, with $88,000 as the next key level. Buyers must act to prevent further decline.
- Weakening momentum and a rounded top pattern suggest increased selling pressure, keeping Bitcoin’s short-term outlook bearish.
- A breakout above $98,000 is crucial to restore bullish sentiment, but rising sell volume indicates bears are in control.
As selling pressure builds, the recent price movement of Bitcoin points to a possible drop. The top cryptocurrency fell 2.33% from the day before to $95,162.75. The analysis by Nebraskangooner indicates that although Bitcoin is still above support levels, it is beginning to create a rounded top pattern. This could indicate further downside unless buyers step in. The $95,500 support remains critical, with $94,500 acting as the last defense before deeper declines.
Price Struggles Near Key Levels
Since Bitcoin dropped below a short-term trendline, the bullish momentum appears to be waning. Additionally, lower highs and lows support a pessimistic view. Bullishness over the long run is supported by the 200-day moving average, which is still below the present price. Short-term indicators highlight a possible retracement. If the price fails to hold support at $94,500, Bitcoin may slide toward the $88,000 zone.
Additionally, resistance near $98,000 continues to cap upward movements. A break above this level could restore bullish sentiment. However, increased selling volume suggests bears are gaining control.
Technical Indicators Signal Weakness
A yellow curved trendline marks a rounded top formation, hinting at shifting momentum. The breakdown below the diagonal support line adds to the bearish case. Furthermore, the short-term moving average has started sloping downward, confirming the loss of momentum.
Volume spikes during declines reveal strong selling interest. This suggests that market participants are increasingly cautious. If demand fails to pick up at the current support zone, further losses could follow. Besides, the blue projected line toward an $88,000 target. If Bitcoin fails to rebound soon, this scenario becomes more likely. Buyers must step in around current levels to prevent additional declines.
What’s Next for Bitcoin?
The trend suggests a corrective phase rather than a complete reversal. However, the next few days will be critical. If support at $94,500 holds, a relief bounce could occur. Otherwise, Bitcoin may retest lower levels before finding a solid base.
Moreover, breaking above $98,000 would invalidate the bearish outlook. The combination of increasing sell volume, a rounded top pattern, and short-term trend breakdown points to potential downside risk.
