Bitcoin (BTC) is standing firm at $93,257, an important support level that could determine its next big move. As the battle between the bull And as bears intensify, the stakes are high: A successful defense could generate new momentum, while a break below could trigger significant losses.
As the market navigates this pivotal moment, this article aims to analyze BTC’s current position at the critical support level of $93,257, exploring the factors influencing its price movement. By examining key technical indicators and the market Dynamically, the goal is to assess if the bulls can defend this level and potentially execute a rebound or if a break below could lead to deeper losses.
Analyzing the recent price action of Bitcoin
Bitcoin is facing a recession trend, trying to break below the $93,257 support level. If this continues, BTC could test the 100-day SMA on the 4-hour chart, which could act as support or signal further weakness. Failure to keep above this level can lead to a deep improvement and possibly more significant losses towards the lower support zones.
Analysis of the 4-hour Relative Strength Index (RSI) suggests that BTC may continue its decline, as the RSI has fallen to 35%, indicating increasing selling pressure. A reading below 50% suggests weakness bullish trend and increases the likelihood of further declines. If the RSI continues to fall, it may indicate that Bitcoin is entering a prolonged bearish phase.
Related reading
Despite trading above the key 100-day SMA, Bitcoin is showing strong negative momentum on the daily chart, highlighted by bearish candles and rising. pressure to sell. This suggests that the crypto asset is struggling to maintain its upside strength, and if the downward trend continues, it could lead to a major correction and test the lower support levels.
Finally, the RSI on the daily chart has fallen from the overbought zone to 63%, indicating a change in market sentiment. It means that to buy Pressure is easing, and acceleration may weaken. A move away from the overbought area may signal the start of a consolidation phase or the start of a corrective pullback.
Possible Scenarios: Rebound or Collapse?
As Bitcoin tests key support levels, a rebound or breakdown is expected. Thus, if bulls manage to defend critical levels like $93,257, BTC witnesses a rebound, gains upside strength and targets its previous high of $99,575. Additionally, a break above this level could pave the way for the digital asset to set New highsExtending the bullish trend.
Related reading
However, if selling pressure increases and BTC successfully breaks below the $93,257 mark, it could break below the key support zone, potentially triggering further declines to the $85,211 support range and beyond.
Featured image from Adobe Stock, chart from Tradingview.com
