Bitcoin is currently grappling to maintain its position above the critical support range of $92,500 to $94,000. As the cryptocurrency hovers slightly above $95,000, analysts are closely monitoring whether it can stabilize or if ongoing weakness will lead to further declines. Market sentiment remains bearish, and technical indicators suggest persistent pressure, despite attempts at minor rebounds.
Key Indicators Signal Potential Downturn
The SuperTrend indicator on the weekly chart is approaching a significant shift, moving from bullish to bearish for the first time in years. An analyst noted that the last occurrence of this trend was just before the onset of the 2022 bear market. If Bitcoin closes below $96,000 on a weekly basis, it could signal negative momentum for long-term traders.
Additionally, a pronounced bearish divergence between Bitcoin’s price and the Relative Strength Index (RSI) has been noted for nearly a month. This divergence often indicates weakening momentum, making a breakout less likely in the near term. Consequently, a swift recovery to new highs is not anticipated.
Short-Term Relief May Be Possible
Despite the prevailing bearish outlook, some indicators point to short-term oversold conditions, which could facilitate brief relief rallies. Nevertheless, analysts caution that a confirmed bottom has yet to be established. Should Bitcoin fall below its current support range, analysts predict the next significant downside level around $85,000 to $86,000.
Resistance levels are also critical for future price movements. If Bitcoin manages to bounce back, the strongest resistance barrier lies between $99,000 and $100,000, a range that previously functioned as support. Until this level is reclaimed, analysts expect Bitcoin’s price action to remain slow, weak, or stagnant.
The outlook for Bitcoin suggests that the cryptocurrency may remain under pressure for several weeks or potentially months unless it can recover major resistance levels. The upcoming weekly close near $95,000 is now viewed as a pivotal moment for determining market direction. As investors watch closely, the next few days will be crucial in shaping Bitcoin’s trajectory in the increasingly volatile market.