Bitcoin Price Outlook: Is an $80K Target Feasible Following Support Breaks?
Bitcoin’s price has recently declined below key levels, with the $92,000 point turning into resistance. The Relative Strength Index indicates a potential for a rebound, with the $82,000 mark as a target. Despite this, the futures market shows signs of long liquidations, potentially leading to further price drops.
Bitcoin has experienced a notable decline recently, failing to maintain a significant support level. Despite this downturn, indications point towards a potential market rebound. Technical analysis suggests that while Bitcoin has dropped below the critical $92,000 mark, the 200-day moving average near $82,000 could serve as a potential target for recovery. Notably, the Relative Strength Index (RSI) has entered oversold territory, implying that a rebound or short-term bullish reversal could be imminent provided that Bitcoin successfully surpasses the $92,000 resistance.
Examining the 4-hour chart reveals a pattern of lower highs and lows for Bitcoin, particularly following a rejection at $109,000. With both the $100,000 and $92,000 thresholds breached, the price may trend towards the $80,000 mark in the short term. Nevertheless, the RSI’s oversold signal suggests that a price pullback or consolidation is on the horizon.
In terms of market sentiment, the ongoing price decline has led many futures traders to liquidate their long positions in frustration. Open interest data reflects a steady decrease in outstanding futures positions during this correction. Although the market has lost a key support zone, there remains a chance for further long liquidations, which could exert downward pressure on Bitcoin’s price in the near future.
In summary, Bitcoin is currently facing a price drop after losing vital support levels. While the possibility of recovering towards the $82,000 level exists due to oversold market conditions, the asset must first surpass the $92,000 resistance. Furthermore, increasing liquidations in the futures market could lead to additional downward pressure on Bitcoin’s price in the coming weeks.
Original Source: cryptopotato.com
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