Bitcoin risks falling to $ 78,000

Bitcoin BTC $87,178.94 Mezo Wrapped BTC -0.56% Market capitalization $51.06 million VOL. 24 hours $2 billion has fallen by just over 1% over the past day, but the key event was the weekend, when the cryptocurrency’s price almost broke through a critical support level before resuming short-term growth. This happened on the back of technical signals and signs of reduced pressure from sellers.

On the daily chart, BTC remains in a head-and-shoulders formation, which usually implies a bearish breakout after breaking through the neckline. For bitcoin, this level is located near $ 86,100. on January 25, the price briefly dropped to this level, but later recovered. Closing the day below $ 86,100 could activate the potential for a 10% drop.

The recovery was supported by a hidden bullish divergence between the price and the Relative Strength Index (RSI). The price has been forming higher lows, while the RSI has been forming lower lows, which indicates that selling pressure is easing and usually signals a short-term uptrend.

Online data also confirms the decline in sales activity. According to Santiment, the Spent Coins Age Band has dropped by 72%, from 27,000 to 7,690 BTC. This means that more holders are holding on to their assets. At the same time, daily outflows from bitcoin ETFs indicate weak institutional demand, and the high NUPL (0.35) indicates the risk of profit-taking by investors.

The nearest resistance level for BTC is in the $ 90,168-$ 90,591 zone, with a concentration near $ 90,550. Breaking through this line will open the way to $ 91,210, and a breakout above $ 97,930 could neutralize the bearish formation. Instead, a drop below $ 86.100-$ 85.900 will signal a deeper correction with a potential decline to $ 78.000, which would mean a loss of more than 11% from the current level.