With the total crypto market cap down at $2.81 trillion, Bitcoin is trading at a market value of $86,147. This marks an intraday recovery of 2.47% after a massive 5% crash last night.
During the downfall, BTC price created a new low at $82,133 and marked a closing price under the 200-day EMA line. The sharp decline has shaken market confidence, raising concerns over further corrections. With the increasing selling pressure, is Bitcoin aiming for the $76,000 support level?
Bitcoin Technical Analysis Warns Further Weakness
In the daily price chart, Bitcoin has marked four consecutive red candles, accounting for a nearly 20% drop. The intraday recovery tests the broken support-turned-resistance level at $86,707.
Currently, BTC price is struggling to overcome the immediate resistance while hovering near the 200-day EMA line. Due to the prevailing downfall, the short-term recovery hints at a potential retest of the broken horizontal level.
If the downfall continues, the BTC price is likely to continue a post-retest reversal to the next support level. Furthermore, the increasing decline has resulted in a resurgence of bearish histograms in the MACD indicator, indicating a growing negative momentum.
The declining trend in the EMAs also hints at negative crossovers, strengthening the bearish outlook. The 20-day EMA line has crossed underneath the 50-day EMA and projects a potential crossover with the 50-day EMA line.
Hence, the average lies as a trigger for multiple short-term selling signals. A continuation of this trend could lead to deeper corrections, intensifying fears of an extended bear phase.
Bitcoin ETF Outflows Cross $750M
Amid the crashing Bitcoin prices, the daily total net outflow of U.S. Bitcoin Spot ETFs hit $754.53 million. BlackRock remains the biggest seller, with an outflow of $418 million, followed by Fidelity dumping $145 million into the market.
Out of the 12 ETFs, 9 registered outflows, while 3 remained with a net-zero flow. The massive outflow comes after the $1.14 billion worth of outflows registered yesterday.
BTC Price Targets
As per the BTC price action analysis, the downfall in Bitcoin prices is expected to continue. Supporting this outlook, the declining institutional support reveals shakier grounds for Bitcoin.
Hence, the immediate support level of $76,722 emerges as the primary target. On a bullish front, the key resistance above $86,000 remains at the $92,118 level.
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