- Bitcoin is trading around the $87.7K mark.
- BTC’s trading volume has exploded by 184%.
The bearish zone built in the crypto market is strong enough to pose severe risks across the assets. Their price movements are fluctuating heavily, losing the recent gains and momentum. Bitcoin (BTC), the largest asset, is trading on the downside and failing to escape the red. The token’s Fear and Greed Index is holding at 20, reporting extreme fear.
The asset has posted a 0.95% drop in the last 24 hours, and it opened the day trading at a high of $88,839.22. With the bearish pressure within the BTC market, the price slipped to a bottom of $86,003.71. Bitcoin is trading at $87,739.60, and the trading volume has exploded by 184% to $44.55 billion. Notably, the BTC market has seen a liquidation of $191.49 million.
With the bearish Bitcoin trading chart, the price could fall to its support range at around $87,470. Further correction on the downside might initiate the emergence of the death cross, and the bears send the price below $87.1K. Upon a momentum reversal, the Bitcoin price might rise and find the resistance at the $88K level. If the upside pressure strengthens, it could trigger the formation of the golden cross, with the bulls taking the price above $88,329.
Momentum Shifts Against Bitcoin as Indicators Flash Downside Risk
The technical analysis of the BTC/USDT pair displays the formation of red candles. The Moving Average Convergence Divergence and the signal lines are below the zero line, indicating a bearish shift. The asset is trading below its longer-term average, and a potential trend shift is possible if the MACD starts moving back above zero.
In addition, the indicator used to analyse the money flow, the Chaikin Money Flow (CMF), is at 0.20, which suggests strong selling pressure in the BTC market. The money is flowing out of the asset, and the distribution is dominating accumulation. Significantly, the values are this far below zero, aligning with the ongoing bearish momentum.
Bitcoin’s daily Relative Strength Index (RSI) is found at 39.97, implying a weak sentiment leaning bearish. It is below the neutral level but not yet oversold. This exhibits a continued downside or consolidation, unless the buying strength picks up and pushes back above 50.
Furthermore, the Bull Bear Power (BBP) reading of -996.67 signals extremely strong bearish dominance. The sellers are firmly in control, and the downside pressure of BTC is intense. Also, it can sometimes precede a short-term relief bounce if the selling becomes exhausted.
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Source: https://thenewscrypto.com/bitcoin-btc-volume-erupts-184-will-it-face-a-key-85k-bearish-test/
