The price of Bitcoin (BTC) has plummeted, dropping below the critical $100,000 threshold and leading to more than $2 billion in industry-wide liquidations.
Bitcoin/USD was down 11% from its peak of $109,026 on Thursday morning, trading at $97,300.
Institutional changes and analytical indicators pointing to possible additional correction are blamed for this slide.
The TRUMP currency saw a 10% growth in the last day, putting its market capitalization close to $4 billion despite Bitcoin’s decline.
However, PEPE has surpassed TRUMP to place third among the most significant meme currencies.
Just two days ago, TRUMP’s Relative Strength Index (RSI) was at 27.8; four days ago, it was at 19.8. Today, it stands at 48.5. After TRUMP was in highly oversold conditions, this quick recovery suggests that buying demand has returned.
Price Fluctuations
In line with the most recent price movement, an RSI below 30 indicates that an asset is oversold and may be ready for a rebound. Although it has not yet reached bullish territory, TRUMP’s RSI, currently at 48.5, is at its highest level in weeks and shows a move towards a more neutral posture.
On a scale of 0 to 100, the RSI is a momentum indicator that gauges the rate and size of price changes. Readings below 30 indicate oversold conditions and a potential comeback, while readings above 70 indicate overbought conditions and a probable pullback.
TRUMP’s RSI is approaching 50, which indicates a balance between buying and selling pressure. If it keeps rising and crosses 50, it may be a sign of increasing bullish momentum.
The on-chain transfer of 49,700 BTC from the 6–12 month spent output age band (SOAB) has raised concerns about possible selling pressure. According to XBTManager, these actions typically occur before market turmoil and could affect pricing in the days ahead.
According to the latest data, addresses have amassed more than 30,000 BTC throughout the decline, which may provide price support.
According to Alphractal’s analysis, market sentiment has shifted negatively for the first time since November 2024. This change in opinion can offer alluring purchasing opportunities for contrarian investors who want to go against the grain.
What To Note
- The current market structure of Bitcoin, which is typified by a symmetric triangular pattern on shorter timeframes, indicates the March 2024 consolidation period.
- According to technical analysis, support levels between $94,101 and $92,600 may exist, with a fair value gap at $99,500 that might be reached soon.
- The market has also noticed the possible establishment of a US Bitcoin Strategic Reserve. According to recent remarks by David Sacks, the Trump administration’s crypto czar, the current policy is to assess the viability of such a reserve, bringing the prediction market odds for deployment in 2025 down to 47%.
The institutional adoption story is still compelling, even though short-term technical indicators suggest additional pressure and potential difficulties at lower support levels.
The current 11% drop from all-time highs is consistent with bull market historical averages, indicating a healthy consolidation rather than the beginning of a significant correction.
Although far more significant than previous drawdowns, a dip to the $90,000 level would offer substantial technical and psychological support.
Market players should monitor ongoing institutional flows and whale accumulation trends as possible catalysts for a price rebound.
