- Bitcoin’s failure to reclaim $100,000 and its slide toward $92,500 highlight deep technical weakness.
- With a recent death cross and persistent institutional selling, the market appears vulnerable, potentially offering bullish investors much lower entry levels.
Bitcoin continues to show just how weak it is during the Monday session as we initially tried to rally but then gave back gains to rapidly form a bit of an inverted hammer. As I look at the Bitcoin chart, I'm paying close attention to the $92,500 level because I think that might be the beginning of the end for Bitcoin if we slice through it. It's worth noting that we are well below the $100,000 level, which is a large, round, psychologically significant figure, but more importantly, an area that attracts a lot of headlines.
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We have been below it for four days now, and it doesn't look like it's coming back quickly. Short-term rallies are more likely than not to end up being selling opportunities. That being said, I like the idea of buying Bitcoin at lower levels, and those levels might include numbers like $85,000, possibly even $75,000. This is a market that has been absolutely crushed, as I think a lot of the hype about crypto has finally been taken out of the market now that the institutions are involved. Institutions have been selling a lot of crypto, and that is overwhelming retail traders.
The 50-day EMA just crossed below the 200-day EMA, kicking off the so-called death cross. And that is also something worth paying attention to. That is a longer-term sell signal, although I don't necessarily subscribe to it as being overly reliable. But at the end of the day, people will be paying close attention to it because it makes for good headlines. Where we end up is still one of the situations that remains to be seen.
Bitcoin looks horrible as it is now negative for the year. And quite frankly, I don't see the $92,500 level holding once it's all said and done. I think if you're bullish on Bitcoin, that's fine, but you should get an opportunity to buy it at much lower levels.
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