Bitcoin Bear Market in Control? $94,000 Could Be the Next Key Support Zone
Since early May, Bitcoin, as the flagship cryptocurrency, has remained above the psychological threshold of $100,000. However, the recent escalation of tensions in the Middle East has put new pressure on the cryptocurrency market, with BTC's price briefly dipping below $99,000 last weekend.
On the social media platform X, on-chain analyst Burak Kesmeci predicted that Bitcoin could fall to the range of $93,000 to $94,000 in the short term. He cited the Fixed Range Volume Profile (FRVP) and the Intra-Session Liquidity (ISL) technical indicators, which highlight key areas for buyers and sellers during significant volume fluctuations, supporting his view.
According to his analysis, the FRVP's Intra-Session Liquidity (ISL) is around $95,000, which constitutes an important resistance level. If Bitcoin fails to maintain above this price level, the selling pressure in the crypto market may intensify.
Kesmeci mentioned the importance of the 50-day Simple Moving Average (SMA50) for short-term trends, which is currently near $105,000. Notably, Bitcoin's daily closing price has already dipped below this level. If the price cannot successfully close above the SMA50, it may trigger further downward movement.
The Relative Strength Index (RSI) also supports Kesmeci's bearish stance, currently below 50 and below the 14-day moving average, indicating a weakening upward momentum for Bitcoin. Additionally, the RSI has formed lower lows, further suggesting that the market is currently dominated by sellers.
Kesmeci emphasized that $94,000 is a key level to watch, as the Value Area Low (VAL) in the FRVP points to the range of $93,000 to $94,000, which could serve as a strong support area that might drive price recovery after short-term selling.
Moreover, he also mentioned that the 200-day Simple Moving Average (SMA200) is also focused on $95,000, further validating his viewpoint. Kesmeci advised market participants to keep an eye on this support area, as holding above it could present a good buying opportunity.
As of the time of writing, Bitcoin's price is approximately $101,859, having dropped 0.7% in the past 24 hours and down 4.8% weekly.
What are your thoughts on the upcoming market trends? Leave your opinions in the comments!