Bitcoin Faces Potential Sharp Price Correction
The world’s largest cryptocurrency neared $90,000 before pulling back. Experts point to growing selling pressure as a key factor.
Bitcoin is experiencing increasing bearish pressure after a $359.7 million liquidation of long positions shifted market dynamics. The cryptocurrency reached a three-week high near $89,000 on March 24 but failed to sustain its gains, encountering strong resistance at the golden Fibonacci ratio and the 100-day EMA. The digital asset has been forming lower highs and lower lows, reinforcing signals of increased selling pressure. Additionally, the forced liquidation of leveraged positions is exacerbating short-term declines—though this process can also set the stage for a recovery once excess leverage is flushed out of the market.
Bitcoin Key Levels – Technical Analysis
During today’s Asian session, Bitcoin dropped 1.77%, trading around $86,100 in the early hours of the European session. The price is currently testing the 50-day and 100-day exponential moving averages (EMAs) on the four-hour chart for the third time this week—a crucial technical level that could determine the short-term market direction.
If Bitcoin fails to hold above the recent low of $85,800, the next critical support lies at $84,400. Moreover, the Relative Strength Index (RSI) on the four-hour timeframe has entered bearish territory, signaling potential further weakness.
On the other hand, if Bitcoin stabilizes at these levels, it could attract renewed buying interest. A potential bullish reversal will depend on the asset’s ability to stay above these support levels and generate enough demand to absorb the recent wave of selling.
Macroeconomic Factors at Play
Bitcoin’s rally has slowed amid a more stable macroeconomic environment. Recent U.S. inflation data came in softer than expected, and easing concerns over tariffs have kept risk appetite intact in traditional markets. As a result, the momentum behind crypto assets has weakened.
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