Bitcoin’s price has been pretty stagnant lately. While it briefly hit $108,000 earlier this week, it’s mostly hung out between $103,000 and $106,000. It’s stayed above $100,000 since early May, but hasn’t really gained much momentum. Let’s dive into why that might be.
Technical Indicators Point to a Potential Drop
Analyst Burak Kesmeci predicts Bitcoin could fall to the $93,000-$94,000 range. He bases this on several technical indicators:
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Fixed Range Volume Profile (FRVP) Intensive Swap Level (ISL): This indicator suggests a key resistance level around $95,000. Breaking below this could trigger more selling.
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50-Day Simple Moving Average (SMA50): Currently near $105,000, Bitcoin is about to close below it for the second time. A successful close below this could signal a downward trend.
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Relative Strength Index (RSI): Below 50 and its 14-day average, the RSI shows Bitcoin is losing bullish momentum. Lower lows on the RSI further confirm seller dominance.
Why $94,000 is Key
Kesmeci points to a few reasons why $94,000 is a crucial level:
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FRVP Value Area Low (VAL): This indicator suggests support around $93,000-$94,000, potentially bouncing the price back up after a sell-off.
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200-Day Simple Moving Average (SMA200): This average also converges near $95,000, supporting the $94,000 prediction.
What to Expect
Kesmeci advises keeping an eye on the $94,000 support zone. It could present good buying opportunities if Bitcoin drops to that level. As of now, Bitcoin is trading around $101,596, down about 1.3% in the last 24 hours.