Technical Analysis
- Price Action: Bitcoin is currently at $79,245.41, down -3.54%, with a 24h low of $76,606.
- Moving Averages:
- EMA(7) at $80,419 (short-term resistance).
- EMA(25) at $83,675 (mid-term resistance).
- EMA(99) at $87,852 (long-term resistance).
- MA(5) is above MA(10), signaling early bullish divergence.
- Volume & Momentum:
- Increasing red candles and high sell volume indicate strong bearish pressure.
- RSI(6) is 29.87 (oversold territory), suggesting a possible bounce.
- Support & Resistance:
- Support: $76,606 (recent low).
- Resistance: $80,400 (7 EMA) and $83,600 (25 EMA).
Potential Causes of the Drop
- Profit-taking at recent highs (~$92,810).
- Market uncertainty ahead of major economic data or news.
- Leverage liquidations as BTC dropped below key support levels.
- Overall market sentiment leaning bearish due to macroeconomic factors.
Conclusion
Bitcoin is in a short-term downtrend but is approaching oversold levels, meaning a relief rally could be near. Watch for a breakout above $80,400 for confirmation.