- Bitcoin crashes to $91K from $95K as selling pressure mounts, struggles to recover.
- Market volatility increased after U.S. trade tensions, causing BTC to drop sharply.
- If Bitcoin fails to regain momentum, a further decline below $89K is also possible.
Bitcoin (BTC) has fallen sharply, breaking below $95,000 and hitting $91K amid market volatility. It has struggled to maintain its position above this level, however succumbed to global trade uncertainties and increased liquidations.
The crypto market faced extensive liquidations during the weekend which resulted in billions of dollars worth of losses. The market downturn happened after the U.S. increased tensions with its trading partners. Despite the crash, Bitcoin momentarily pushed to $92K. Following the dip, the Fear and Greed Index sentiment index dropped to 25, indicating rapid shifts in investor confidence.
Technical Levels Signal Further Downside Risk
Following Bitcoin’s rapid price change, analysts highlight key support near $92,000, with stronger support around $89,000. A break below these levels could open the door for a drop toward $80,000.
The 100-day moving average around $91K is acting as support, but resistance near $95K has limited upward movement. If BTC fails to reclaim $100,000, further declines could follow. Market analysts note that Bitcoin’s price action remains stuck between the $108,000 resistance and $92,000 support. A decisive breakout in either direction will determine the next major trend.
Related: ETF Inflows Slump as Bitcoin ETF Demand Cools Dramatically
Outlook Remains Uncertain
The market presents two different opinions about Bitcoin’s recovery prospects, while some traders predict further price drops. With fewer signs of buying activity, Bitcoin remains consolidated. Earlier, some market observers had predicted that Bitcoin would surpass $122,000 by the end of February. According to bearish predictions, Bitcoin could test the $91,200 threshold before beginning an uptrend based on long-term expectations.
Bitcoin’s next movement depends on macroeconomic elements, including Federal Reserve regulations together with inflation data. The crypto market presents high volatility, with both bullish and bearish pressures affecting price movements.
For now, Bitcoin’s next move depends on whether it can reclaim $100,000 or if further declines push it below $90K. A sustained drop under this threshold could trigger additional losses, making the coming days critical for Bitcoin’s trajectory. Traders closely watch support and resistance levels to gauge the market’s next big move. As volatility remains high, Bitcoin’s price action is likely to remain unpredictable.
