With a bearish start to this week, Bitcoin remains near the $93k support. Will BTC’s price see an extended correction phase?
Bitcoin has dropped to $93,300, following a bearish Sunday that resulted in a 24-hour decline of 1.71%. At the current market price of $93,390, Bitcoin’s market capitalization stands at $1.84 trillion.
Under the bearish influence on Bitcoin’s price, the crypto market has witnessed liquidations totaling $167.94 million over the past 24 hours. This figure is significantly higher than the typically lower trading volumes observed over weekends.
As liquidations surge, the tightening bearish pressure on the BTC price trend raises concerns about a potential breakdown. Could this lead to a test of the $90,742 support level?
Bitcoin Price Analysis
On the 4-hour chart, Bitcoin’s price action shows a failed bullish attempt to break above the $99,514 resistance level. This resulted in a bearish reversal from the 100 SMA line, followed by a retest of the critical support near the $93,000 psychological level.
The Doji formations near the support level reflect an attempt to absorb the increased selling pressure. However, the lower-high formation warns of a potential breakdown rally.
Additionally, the failed bullish move has increased the likelihood of a bearish crossover between the 100 and 200 SMA lines. Meanwhile, the 4-hour RSI continues to show a minor bullish divergence.
Institutions Witness Outflows
As BTC price volatility increases, institutional support continues to fluctuate. Over the past week, Bitcoin spot ETFs in the U.S. saw an outflow of $387.54 million. This broke a streak of three consecutive bullish weeks and ended the week with a net outflow of $297.75 million.
BTC Price Targets
With institutional inflow declining, the increasing liquidations and high volatility suggest the possibility of a breakdown rally for Bitcoin. If Bitcoin closes strongly below the $92,654 support level, the price is likely to test the $90,742 support.
Conversely, a bullish reversal could push Bitcoin towards the 50 SMA line at $95,647. A close above the 50 SMA could signal a move towards $100k.
