Bitcoin To Retest $92,000? Bearish Divergence Spotted
Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, appears to be failing to live up to expectations following its massive rally following the inauguration of crypto-supporting Donald Trump as president. Currently, the entire market appears to be in trouble, with some cryptocurrencies rising in price while others appear to be trading sideways or consolidating.
Bitcoin’s Continuing Consolidation
BTC appears to be consolidating in a tight range near the $108,000 resistance (between $100,000 and $108,000) amid market uncertainty. However, Bitcoin’s price is now falling towards the lower bound of the consolidation.
Bitcoin Technical Analysis and Price Prediction
According to expert technical analysis, BTC looks bearish as it formed a bearish divergence on the daily time frame.
Bearish divergence occurs when an asset price makes higher highs, but technical indicators such as the Relative Strength Index (RSI) make lower highs. This divergence signals that upward momentum is fading and suggests that prices may fall in the coming days.
Based on the recent price action, if BTC remains below the $108,000 level, there is a high chance of an 11% decline to reach the next support near the $92,000 mark. However, for an asset like Bitcoin, a significant price drop would be a challenge even with a pro-cryptocurrency president in office.
BlackRock CEO BTC predictions
In addition to recent price action and technical analysis, on January 22, 2024, BlackRock CEO Larry Fink reportedly boldly predicted that Bitcoin could reach $500,000, $600,000 in the future , or even $700,000. Coin Encyclopedia.
This predicted BTC target will be achieved only after a break above the $108,000 resistance; otherwise, the price may continue to consolidate further.
Current Price Momentum
Currently, BTC is trading close to $104,100, with the price falling by more than 2.65% in the past 24 hours. During the same period, its trading volume fell by 35%, indicating that trader and investor participation was lower than in previous days.
