Bitcoin is facing a notable price decline, testing the 200-day moving average at approximately $83K after dropping below $92K. A breach here may signal a bear market. The 4-hour chart shows a swift correction, indicating possible dips below $80K. Investor sentiment reflects panic selling; if not absorbed by buyers, declines may continue.

Bitcoin has experienced a significant decline in its price over recent weeks, despite a brief moment of recovery. Currently, the cryptocurrency is testing critical support at its 200-day moving average around $83K, following a break below the pivotal $92K level. If this moving average is breached, a prolonged bear market may be on the horizon, potentially lasting several months.

Analyzing the 4-hour chart reveals a swift correction, negating recent gains as Bitcoin approaches another critical support level. The charts indicate a possible turning point that could lead the asset to regain momentum above $92K, with aspirations towards the $100K mark. However, the bearish momentum indicated by the RSI suggests that a break below the $80K area is more likely, resulting in new lows in the near future.

In terms of investor sentiment, the current trend shows significant panic selling among short-term holders who are incurring losses. The Short-Term Holder SOPR metric indicates that these investors are realizing losses to mitigate further declines as the market weakens. If demand does not materialize to absorb the selling pressure, the market may continue to see dips in the coming weeks, with an excess of supply exacerbating the situation.

In summary, Bitcoin is at a critical juncture, with its price teetering near essential support levels. The potential break of the 200-day moving average may usher in a prolonged bear market, while current sentiment indicates increasing panic among investors. Without buying pressure, there is a risk of further declines, potentially leading to new price lows.

Original Source: cryptopotato.com

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