Bitcoin has fallen below $96k as BTC miners offload over 2,000 BTC. Will Bitcoin drop below the crucial support at $94,500?
Over the past 24 hours, Bitcoin has shown little movement, currently trading at $95,657, reflecting a 0.67% drop.
However, the market has experienced over $200 million in liquidations, with long-side traders losing $134.34 million. As pressure mounts on the bulls, will Bitcoin dip below its key support at $94,500? Let’s take a closer look.
Bitcoin Price Analysis Puts Focus at $94,393
In the 4-hour price chart, the Bitcoin price trend reveals a bullish failure to cross above local resistance. Along with the resistance trendline, BTC faces constant rejection from the 50% Fibonacci level at $98,611.
The ongoing pullback from the resistance zone is approaching the 23.60% Fibonacci level, which is a critical support at $94,393.
Before the recent rejection, Bitcoin’s price action showed potential for a rounding-bottom reversal, supported by the 23.60% Fibonacci level. However, a retest of this support could weaken the chances of a reversal and put more pressure on the level.
This could significantly increase the likelihood of a downward trend. Despite this, technical indicators are leaning slightly bullish.
The True Strength Indicator (TSI) has reached oversold territory, suggesting a possible reversal. Additionally, the Stochastic RSI has shown a positive crossover, with the lines moving out of the oversold region.
Bitcoin Miners Show Signs of Weak Confidence
As Bitcoin struggles to take a bullish reversal, Bitcoin miners have reflected a drop in confidence.
According to a recent post by Ali Martinez on X, Bitcoin miners have offloaded more than 2,000 BTC in the past week. The Bitcoin miner reserve has dropped from 1.8104 million on February 10 to 1.8089 million this week.
Will Bitcoin Price Fall To $90k?
With the decline in Bitcoin’s miner reserve, the increased supply could exert additional downward pressure on BTC. If institutional buying doesn’t pick up, Bitcoin may break below the 23.60% Fibonacci level at $94,393.
This could lead to a retest of the $90,775 horizontal support level. On a more optimistic note, if U.S. spot ETFs show strength this week, a breakout above the overhead trendline could push Bitcoin to the 50% Fibonacci level at $98,611.
