The Bitcoin price has not quite been able to maintain the bullish momentum that saw it climb to a new all-time high last week. Instead, the premier cryptocurrency has succumbed to bearish pressure over the past few days, falling about 7% from its record-high price.

Unfortunately, the Bitcoin price seems to be at the start of what could be a disappointing downward run over the coming weeks. The latest technical price data indicate a potential bearish trend reversal for the price of BTC, with the market leader at risk of losing its six-figure valuation.

Which Technical Indicators Are Sounding The Sell Alarm?

In a May 30 post on the X platform, crypto analyst Burak Kesmeci provided a technical insight into the price of Bitcoin, explaining that signs are quickly turning bearish for the flagship cryptocurrency. The online pundit projected that BTC could face a severe price downturn to around the $93,000 level in the near future.

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Kesmeci highlighted changes in some technical indicators on the daily timeframe, suggesting that a correction might be on the horizon for the Bitcoin price. One of these indicators is the daily Relative Strength Index (RSI), a momentum indicator that estimates the speed and magnitude of an asset’s price movements.

As observed in the chart above, the daily RSI is around 51 points and below the 14-day simple moving average (SMA). According to the crypto analyst, this technical indicator shift points to a weakening bullish momentum for the Bitcoin price.

Kesmeci also noted that the Fixed Range Volume Profile (FRVP), which analyzes trading volume around a price region, signals a heavy trading zone around the $103,500 level. A sustained close beneath this level could lead to elevated selling pressure for the flagship cryptocurrency, the analyst said.

Furthermore, Kesmeci mentioned that the AlphaTrend indicates that a second close below 106.269 may trigger a “sell” signal for the Bitcoin price. Meanwhile, the Average Directional Index (ADX) suggests that the bears are gaining the upper hand in the market.

Finally, Kesmeci pinpointed the next target at the 0.5 Fibonnaci level and the FRVP Value Area Low (VAL), both of which could be considered major support zones, at around $93,000 and $91,800, respectively. Ultimately, all these technical levels suggest that the Bitcoin price may correct to the $91,000 – $93,000 bracket.

Bitcoin Price At A Glance

As of this writing, the price of BTC is hovering around the $104,000 mark, reflecting an almost 2% decline in the past 24 hours.

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Featured image from iStock, chart from TradingView

While the broader crypto market has been under a consolidation phase, the world’s largest cryptocurrency Bitcoin (BTC) continues to inch upwards. Bitcoin (BTC) started the week on a pretty good note with the BTC price climbing past $57,000 on Monday, October 11.

As per data from Glassnode, the bitcoin futures open interest is soaring back to the early September levels. As Glassnode reported:

Bitcoin futures open interest climbed by $5.6B through October, up 45% since the September lows. Whilst elevated, the $17.6B in open interest is lower than the $22.5B worth of contracts last time prices were trading at $56k.

Popular crypto analyst Lark Davis mentions that the Bitcoin futures open interest can pump even higher. However, “such spikes often come before a correction as a long squeeze comes into effect,” he adds.

Bitcoin Gaining Price Dominance

Observing the current movement in the market, it is clear that Bitcoin is gaining a dominant position over altcoins. On-chain data provider Santiment reports that is converting altcoins traders into BTC-weighted portfolio allocations. Thus, the sentiment is turning to be mildly euphoric for Bitcoin. furthermore, the euphoria levels don’t show extreme greed so far.

With #Bitcoin‘s price dominance converting #altcoin traders temporarily back to $BTC-weighted portfolio allocations, sentiment has turned mildly euphoric. With positivity scores surging, watch to see if the threshold moves into #FOMO danger territory. https://t.co/GnfV2tDtUc pic.twitter.com/15v3NOSCAe

— Santiment (@santimentfeed) October 11, 2021

Furthermore, Santiment also explains that the unique addresses interacting on the Bitcoin network have been on a sharp increase to April/May levels. The data provider states:

If you like #Bitcoin dominance, this has been the week for you. As #altcoins are mostly treading water, $BTC climbed all the way above $57.6k for the first time in 5 months. Addresses interacting on the network continue to indicate increased utility.

With Bitcoin showing strength recently, analysts have been gaining confidence in BTC touching $100K by the end of the year. As of press time, Bitcoin is trading at $56,878 and has a market cap of $1072 billion. The immediate resistance for Bitcoin is $58,000. If BTC crosses this, it can touch an all-time high and beyond very soon.

About Author

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.