*The BTC price continues to press the $93,257 support level ahead of the new US trading session, which may prove critical for its next major move. Bulls fight for the control of the market and bears keep fighting for drops.*
BTC has seen sustained selling pressure due to which the 4 hour Relative Strength Index (RSI) has fallen to 35% meaning we are seeing a weakening of the bullish momentum while increasing bearish sentiment.
If this level is broken, a prolonged downtrend could be confirmed, with the possibility to test the 100-day Simple Moving Average (SMA) on 4 hour chart below. If this support will fail then Bitcoin can fall deeper and hit major support zone around $85,211.
Bitcoin’s Moves Impact Wider Crypto Market
The level of the 100 day SMA has served as support for BTC on the daily chart, however with bearish candlesticks and falling RSI now at 63%, the indications of decreasing buying pressure are apparent. The market sentiment has turned overbought in the past and may result into weak consolidation or complete correction.
Defending the $93,257 level is important, say market analysts. Should Bitcoin recover here it can add fresh legs to a reinvigorated uptrend prompting it towards its all time high of $99,575. If able to break above this resistance than a new record highs are on the cards. But if this critical support fails investors may crash a sharper selloff, dragging BTC to lower levels.
Traders will be watching the next few days for a sign of a rebound or decisive breakdown. Bulls have to keep defending $93,257 for it to be set up for recovery, but bearish momentum could take losses to the next level.
With the crypto market far too volatile for my tastes, any price action stemming from Bitcoin’s movements could create a powerful impression that will ripple across the total market and affect sentiment as a result.
