Bitcoin price action has since November 2024 been oscillating between $90,000 and $108,000. The $90,000 level has been a critical support zone. It has consistently been preventing deeper declines throughout this period.
However, with Bitcoin currently trading at $95,879, the market appears close to testing this crucial support level once again.
The current price movement shows concerning signals for Bitcoin bulls. However, trading above the 100-day Simple Moving Average suggests that the bulls still have some hope.
This technical indicator has historically served as a reliable gauge of market sentiment. Bitcoin’s ability to maintain positions above it could still discourage more sellers for now.
The Relative Strength Index (RSI) paints a similarly cautious picture. Currently reading at 44.30, the momentum indicator is approaching oversold territory.
Recent attempts to push the RSI above the 50 mark have failed. This indicates that buyers are struggling to gain control of the market. If the RSI continues to decline below 40, it could trigger increased selling pressure.
Potential Scenarios for BTC Price
A daily close below the critical $90,000 support level and the 100-day Simple Moving Avearge could trigger a big downturn. Technical analysis suggests that such a breakdown could drive Bitcoin price toward $73,000, based on historical support. This bearish scenario becomes more likely if the RSI remains in bearish territory.
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However, hope remains for the bulls. If Bitcoin maintains its position above $90,000 and the 100-day SMA, it could reignite bullish momentum. A decisive break above the range high of $108,000 would invalidate the bearish outlook entirely. This could pave the way for new highs.
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