Market Overview
Bitcoin (BTC), the largest cryptocurrency by market capitalization, is experiencing a downturn, leaving traders and investors questioning its immediate future trajectory. The key question remains whether the price will hold above the critical $95,000 level or continue its descent towards the $80,000 mark.
Currently, Bitcoin is trading at $95,524, reflecting a 6.04% decrease from the $100,000 mark and a significant 14% drop over the past month. This downtrend commenced after Bitcoin reached a new high of $126,000 in October. The subsequent weeks saw considerable profit-taking, allowing sellers to gain momentum while investors adopted a more cautious stance.
Recent Market Activity and ETF Flows
The daily trading volume has surged by over 69% in the last 24 hours, reaching $129 billion. This increase in volume suggests substantial selling activity among traders. Spot Bitcoin Exchange-Traded Funds (ETFs) have also contributed to the selling pressure, with outflows totaling over $866 million in the past 24 hours. Grayscale, in particular, recorded the highest outflow, amounting to $318 million, according to data from Farside Investor.
Support and Resistance Levels
The market sentiment is divided regarding Bitcoin's next move. Some analysts believe that Bitcoin could find strength as long-term holders remain steadfast and large buyers are strategically acquiring assets during the dip. The increased activity from older wallets this year is interpreted by some experts as a sign of planned repositioning rather than panic selling. Conversely, other experts suggest that if the selling momentum persists, the cryptocurrency could decline to $80,000.
Analysis of the daily chart indicates that Bitcoin has broken its structural support at the $98,000 level and is currently experiencing a downtrend with significant momentum. The cryptocurrency is now testing the $95,000 support level, which some experts identify as a potential reversal zone.
Technical indicators on the weekly timeframe show the Relative Strength Index (RSI) at 54, with the moving average at 41. These readings suggest that sellers are currently in control of the market, and there is still room for further downward movement.
In summary, if Bitcoin breaks below the $95,000 support, it could face its next significant support levels ranging between $86,000 and $80,000, where increased buying pressure might emerge. However, a market reversal above $98,000 could signal a recovery, with buyers potentially targeting $105,000 as an initial recovery goal. Bitcoin currently sits in a precarious position, balancing elements of fear and opportunity.
Crypto Analyst Ted has also commented on the situation, noting that Bitcoin has lost its "$98,000 support zone." In a post on X, Ted stated that the next "major support is around the $92,000-$93,000 level, which also has a CME gap. It seems like Bitcoin could now fill the CME gap before any relief rally."