Approaching Death Cross Scenario for Bitcoin (BTC), Anticipating Potential $90,000 Dive due to Bearish Predictions
Bitcoin Plunges Below $95,000 on Gloomy Outlook
Diving down once again, Bitcoin finds itself back below the psychologically significant $95,000 level, with the coin showing no signs of recovery just yet.
As the allure of bearish sentiments continues to grow, we could possibly see Bitcoin slide down to $90,000, further echoing the bearish waves sweeping through the leading virtual currency.
Gathering Clouds of Pessimism
The looming shadows of bearish sentiment are becoming starker as the MACD indicator for Bitcoin edges closer to forming a death cross—an indictor that usually materializes when the MACD line breaches below the signal line.
This technical pattern appears when the MACD line, which tracks price trends and calculates buy/sell signals based on changing trends and momentum, slips beneath the signal line. Normally, the death cross indicates the beginning of extensive bearish trends. Adding to the troubles, this bearsish MACD development adds fuel to the growing concerns over the near-future price performance of the king coin.
Negative Tides Creeping In
Beyond the MACD turbulence, the persistent negative funding rate suggests even darker days ahead for Bitcoin. Coinglass data demonstrates that more days (since May 1) have had a negative funding rate than positive ones, hinting at a rising preference for short positions among traders.
The present standing of the funding rate sits at -0.0002%, suggesting that the majority of traders are betting on additional downward pressure rather than price recovery.
The options market, too, casts a gloomy picture for Bitcoin's near-term pricing outlook. At present, Bitcoin's put-to-call ratio stands at 1.33. This signifies that a higher number of open put contracts (bets anticipating a Bitcoin price drop) compared to call contracts (typically bullish bets) have been issued. A ratio greater than one indicates that Bitcoin bears are heavily hedging against further price declines or actively positioning for a near-term dip.
Bottoming Out: $87,000 Meltdown or $96,000 Bounce Back?
Trading at $94,598, Bitcoin has once again transformed the $95,000 price level into a resistance barrier. With the gloomy sentiment spreading rapidly, Bitcoin may extend its descent to $92,048.
If the bulls are unable to shore up support, the coin could slump below the $90,000 mark, trading at $87,908.
However, this pessimistic forecast may fall flat if the bulls regain control of the market. In such a scenario, Bitcoin could push past the $95,000 mark and soar up to $96,187.
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Disclaimer
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- The bearish sentiments surrounding Bitcoin persist, potentially leading to a slide below $90,000, as indicated by the MACD showing signs of a death cross.
- The persistent negative funding rate suggests troubled times ahead, with more traders favoring short positions over recovery.
- The options market also paint a dismal picture, with a put-to-call ratio of 1.33, indicating a heavy hedging against further price declines or a near-term dip.
- Bitcoin's resistance to recovery is evident at the $95,000 level, with a possible descent to $92,048 if the bearish trend continues.
- Should the market conditions change, Bitcoin might surge past the $95,000 mark, reaching up to $96,187.
- The convergence of bearish signals in technology, finance, and crypto trading markets points towards a challenging period for Bitcoin investors and traders.
