- Bitcoin price reverses Tuesday’s corrective bounce from a seven-month low amid pessimism in the crypto market.
- Fear and Greed Index shows extreme fear, Bitcoin Dominance weakens, but trading volume softens.
- BTC’s daily chart posts the first “Death Cross” bearish signal since January 2022.
- Oversold RSI joins 50% Fibonacci Retracement to challenge Bitcoin sellers targeting fresh yearly low.
- BTC faces its first yearly loss in three, stays on bear’s radar as long as price remains below $98K.
Bitcoin (BTC) price drops back to $90,800, reversing the previous day’s corrective bounce from the lowest level since April, down over 2.00% intraday early Wednesday.
Bitcoin’s latest weakness could be linked to a sustained downside break of multi-month support levels, the first bearish moving average crossover since January 2022, and market fears. However, oversold conditions of the 14-day Relative Strength Index (RSI), a pullback in the trading volume and the BTC’s proximity to short-term supports challenge the bears targeting the yearly low.
The CMC Crypto Fear and Greed Index portrays the market’s extreme fears with 16.00 figures, while the Bitcoin Dominance also recedes to 58.3% versus the previous day’s 58.8% by press time, according to Coin Market Cap data.
Elsewhere, Santiment marks a pullback in the trading volume from a four-day high to challenge the BTC’s latest slump even as the market capitalization (market cap) slides to a seven-month low. That said, the latest figures of Bitcoin’s daily trading volume and market cap are $82.96 billion and $1.80 trillion respectively, per Santiment.
On Monday, Bitcoin’s daily chart flashed the first “Death Cross” bearish moving average crossover in 46 months and bolstered the selling pressure. Notably, the “Death Cross” bearish signal is formed when the short-term moving average pierces the long-term moving average from above.
However, the 14-day RSI line is well into the oversold territory beneath the 30.00 mark, and joins the 50% Fibonacci retracement of Bitcoin’s up-move from September 2024 to October 2025 to challenge the immediate downside.
Hence, the BTC’s latest slump gains validation from multiple catalysts even as the RSI, trading volume, and immediate support levels test short-term sellers, suggesting an impending move towards the yearly low, with intermediate bounces.
Bitcoin Price: Daily Chart Highlights Seller’s Dominance
Bitcoin’s sustained trading below the horizontal support from May and an ascending trendline from September 2024, now resistance, join the bearish signals from the Moving Average Convergence Divergence (MACD) momentum indicator (red histograms) to favor bears.
Adding strength to the downside bias is the first “Death Cross” since January 2022, a bearish moving average crossover wherein the 50-day Exponential Moving Average (EMA) crosses the 200-day EMA from above.
Still, oversold RSI highlights the 50% Fibonacci retracement level of $89,400 as an immediate challenge for the BTC bears before they approach the “Golden Fibonacci Ratio”, namely the 61.8% Fibonacci Retracement level surrounding $80,700.
Below that, the yearly low of $74,434 and the 78.6% Fibonacci retracement level of $68,323 could gain Bitcoin seller’s attention ahead of the late 2024 bottom near $52,500.
Alternatively, Bitcoin price recovery remains elusive below the $98,000 hurdle comprising a convergence of the multi-month previous horizontal support and an ascending trendline.
Even so, the $100K, the 50-day EMA of $105,800, and the 200-day EMA around $107,010 could test the bulls before giving them control.
Bitcoin Price: Four-Hour Chart Suggests Intermediate Bounce
On the four-hour chart, Bitcoin price approaches the 78.6% Fibonacci Extension (FE) of its October-November moves, close to $88,740.
Highlighting the importance of the said FE support is the RSI line, which approaches the oversold territory of 30.00, currently around 34.00.
Even if the BTC price slides beneath the $88,700 support, the 100% FE level of $84,230 can act as an additional downside filter before the bears can eye deeper levels discussed on the daily chart.
On the contrary, a month-old previous support line, near $96,700, guards immediate BTC recovery ahead of the 200-bar EMA and a six-week-old falling trendline, respectively near $104,240 and $106,200. Following that, the daily chart’s higher levels will be in the spotlight.
Conclusion
Bitcoin’s latest slump gains validation from multiple catalysts, discussed above, even as the RSI conditions and immediate support levels suggest a short-term corrective bounce before a south-run toward the yearly low.
Also read: Cryptocurrency Weekly Price Prediction: BTC, ETH, and XRP remained Red on Market Fears
