The ongoing bearish pressure in the general crypto market is growing significantly, and Bitcoin, the largest digital asset, has fallen sharply below the $103,000 price mark. With several indicators exhibiting negative signals, the current downward trend seems poised to extend, targeting deeper, crucial support levels.
A Notable Bearish Breakdown In Bitcoin’s Price Impending
While Bitcoin’s price has recently plummeted to key support levels, there is a possibility that the bearish move may continue. Captain Faibik, a seasoned crypto expert and investor, has predicted an impending breakdown below the crucial $100,000 mark.
In his analysis, the expert revealed that Bitcoin is gearing up for a bearish move that will cause the asset to drop sharply in the coming days. Specifically, BTC is displaying a significant Relative Strength Index (RSI) bearish divergence on the weekly time frame chart, indicating a shift in market momentum toward the downside.
A bearish divergence is a technical move that signals a potential weakening of an upward trend. It usually occurs when a crypto asset’s price reaches a higher high while the relative strength index makes a lower low. The emergence of this divergence suggests that Bitcoin might be on the verge of a short-term reset before attempting another leg higher.
After examining BTC’s price action on the weekly time frame, Captain Faibik stated that the asset seems to have reached the top and is now poised for a significant drop. When this anticipated drawdown happens, the expert has forecasted a sharp decline to the $92,000 and $94,000 price range.
Captain Faibik’s prediction is in tandem with the November 2022 notable descent, where it bottomed out at the $16,000 mark. “We bought the dip and now we are selling the top,” the expert stated.
BTC Whales’ Sentiment Turns Negative Amid Waning Price Action
As Bitcoin’s price continues to witness bearish movements, the growing negative sentiment in the market and among investors is likely to bolster the downward performance. A recent report from Justin Bennett, a technical expert and trader, shows that large BTC investors or whales poured into short positions on Tuesday.
Furthermore, the expert noted there is a 6-bar single print from May, a sign of market imbalance, that may need to be completed before bulls can take back control of the market.
In the meantime, Bitcoin is staying above the May trend line for now, as indicated by a red line on the chart. However, the heavy price action raises speculations that a collapse could be on the horizon.
At the time of writing, the price of Bitcoin was valued at $104,752, indicating a 1% decline in the past day and a 2.90% decline in the past week. Bearish sentiment continues to cloud the market, as evidenced by a more than 9% decrease in trading volume in the last 24 hours.
Featured image from Pixabay, chart from Tradingview.com
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