Bitcoin, which saw a modest rebound over the Christmas period, has recently seen a decline. Market participants appear to be booking profits, putting downward pressure on the price of the leading cryptocurrency.
With buying activity weakening, BTC price may soon fall below the critical $90,000 mark. This analysis explores some of the reasons behind this projection.
Bitcoin bears exert more pressure
BTC’s decline over the past few days has pushed its price below the Leading Span A (green line) of its Ichimoku Cloud indicator, where it is currently trading. This indicator tracks the dynamics of an asset’s market trends and identifies potential support/resistance levels.
When an asset’s price falls below the Leading Span A of its Ichimoku cloud, it indicates weakening momentum and a potential bearish move. Leading Span A represents a short-term support level, so a decline below suggests a decrease in the strength of the asset’s uptrend.
Additionally, the coin’s negative Chaikin Money Flow (CMF) confirms the decline in BTC demand. At the time of writing, the indicator sits below the zero line at -0.02.
Based on price and volume, the CMF indicator measures the strength of the flow of money into or out of an asset over a specific time period. As with BTC, when its value falls below zero, it indicates that selling pressure is dominating, suggesting more money outflows than inflows. This is a bearish signal that implies weakening demand and potential downward price momentum.
BTC Price Prediction: Will $91,000 Support Hold?
Bitcoin’s next major support level at $91,488 may not hold if demand weakens further. In this scenario, the coin’s price could fall below $90,000 for the first time since early November to trade at $86,697.
However, if BTC experiences a resurgence in buying activity, this could propel its price above the $97,675 dynamic resistance offered by its Ichimoku Cloud’s Leading Span A. A successful crossing of this level could lead the BTC price to revisit its all-time high of $108,230.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decision. Please note that our Terms and Conditions, Privacy Policy and Disclaimer have been updated.
