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bitcoin (btc) is holding firm at $93,257, a crucial support level that could determine its next major move. Like the battle between bullfighting and the bears intensify, the stakes are high: a successful defense could generate renewed momentum, while a break below could lead to significant losses.
As the market navigates this crucial 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 market dynamics, the goal is to assess whether the bulls can defend this level and potentially fuel a rebound or whether a break below could cause deeper losses.
Analyzing the recent bitcoin price action
bitcoin faces a bearish trend, attempting 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 stay above this level could lead to a deeper crisis. correction and possibly more notable losses towards lower support zones.
Analysis of the 4-hour Relative Strength Index (RSI) shows that btc may continue to fall as the RSI has fallen to 35%, indicating increasing selling pressure. A reading below 50% suggests weakening bullish trend and increases the probability of further falls. If the RSI continues to fall, it could indicate that bitcoin is entering a prolonged bearish phase.
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Despite trading above the key 100-day SMA, bitcoin is showing strong negative momentum on the daily chart, highlighted by bearish and rising candles. selling pressure. This suggests that the crypto asset is struggling to maintain its bullish strength and if the downtrend continues, it may trigger major corrections and test lower support levels.
Lastly, the RSI on the daily chart has fallen to 63% from the overbought zone, indicating a change in market sentiment. This implies that buy Pressure is easing and bullish momentum may be weakening. A move away from the overbought area could signal the start of a consolidation phase or the start of a corrective pullback.
Potential scenarios: rebound or collapse?
As bitcoin tests key support levels, a bounce or breakout is expected. Therefore, if the bulls manage to defend critical levels like $93,257, btc will witness a rebound, gaining upside strength and targeting its previous high of $99,575. Furthermore, a breakout above this level may pave the way for the digital asset to establish new highsextending the bullish trend.
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However, if the selling pressure intensifies and btc manages to break above the $93,257 mark, it could fall through key support zones, which could trigger further declines towards the $85,211 support range and beyond.
Featured image from Adobe Stock, chart from Tradingview.com
