Bitcoin (BTC) Price Faced Selling Pressure, Dropping Below $90,000, Resulting in a Nearly 14% Drop

After falling below $90,000, bitcoin faced selling pressure, resulting in a drop of nearly 14%. Check out Elyfe's analysis to decipher BTC's technical outlook.

Bitcoin (BTC) price fell below the $90,000 support, sparking selling pressure that amplified bitcoin’s bearish move by nearly 14%.

Bitcoin Price Situation

After breaking the support of $90,000, bitcoin faced selling pressure, amplifying its bearish move by nearly 14%, bringing its price down to $78,200.

>This brought the bearish hypothesis presented in the February 25 analysis to fruition.

However, Donald Trump’s announcement regarding cryptocurrency reserves allowed bitcoin to bounce back to this level. Following this news, BTC surged by over 23%, quickly reaching $96,700, a level corresponding to a value area, located just below the annual VWAP as well as the 200-day moving average.

Unfortunately, this drop was absorbed at the beginning of the week. Indeed, although this rise rekindled hope for a market recovery, bitcoin’s price faced new bearish pressure, impacting its price downward once again.

At the time of writing, bitcoin is being traded around $83,700. It seems to be holding in a subtle support zone at the level of the 200-day moving average. Its upward orientation indicates a long-term bullish trend.

However, the short and mid-term trend has clearly turned bearish again, as evidenced by Dow’s theory as well as the 50-day and 20-day moving averages, which are being tilted downward.

The bullish momentum of bitcoin has slightly rebounded but remains overall revised downward. This is reflected both in its price and in its oscillators, which have reached new lows.

This technical analysis was carried out in collaboration with Elyfe, an investor and influencer in the cryptocurrency market.

Focus On Derivatives (BTC/USDT)CVD has continued to decline, demonstrating the predominance of sell orders in the ongoing market.

This dynamic indicates a continuation of seller aggression, highlighting strong selling pressure from investors.

Although a spike in sell liquidations was seen during the last rebound of BTC, these mainly concern buy positions. This situation showcases the dominance of sellers and increased volatility, impacting the buying strength in the market.

The liquidation heat map of BTC/USDT perpetual contracts highlights a bitcoin liquidation zone around $78,000.

We can observe that the price rebounded at this level, which could be linked to an influx of bids at this key zone.

Currently, the main liquidation thresholds are on both sides of the current price. These levels are crucial as they could activate massive orders.

This factor is essential for determining the upcoming price movements, depending on the balance between sellers and buyers at these key price points.

Bitcoin Price Forecasts

Conclusion

Bitcoin is currently in a phase of high volatility, with periods of rebound and correction. Despite a resurgence of hope, selling pressure persists, limiting any sustainable recovery.

In the short term, uncertainty prevails, and only a more decisive signal could reverse the current trend. In this context, it will be essential to monitor price reactions at strategic levels to confirm or adjust the current forecasts.

Finally, it is important to note that these analyses are based solely on technical criteria, and the price of cryptocurrencies can vary rapidly due to other, more fundamental factors.