Bitcoin is currently facing a significant pullback, trading around $93,192, which places it below the 50-day exponential moving average (EMA50) and jeopardizes its recent golden cross formation. This development raises concerns among traders about the sustainability of its upward momentum.
The overall global cryptocurrency market capitalization has contracted to $3.15 trillion, reflecting a 2.38% decline in the past 24 hours. The market has witnessed over $800 million in leveraged long positions liquidated during this time, highlighting the volatility that has characterized recent trading sessions, according to data from CoinGlass.
The recent optimism that saw Bitcoin surpass the $97,000 mark appears to be waning, as broader market fears take hold. Heightened tensions, such as President Trump”s controversial tariffs on European nations, have led investors to seek refuge in traditional safe havens like gold, which has reached an unprecedented price of $4,680 per ounce.
In a stark reflection of current market sentiment, only three of the top 100 cryptocurrencies—Midnight, Quant, and Monero—have managed to record gains exceeding 1% in the last day. Monero is experiencing a notable bullish trend, driven by renewed interest in privacy-focused coins.
Despite the prevailing downturn, traders on Myriad are displaying a degree of cautious optimism. In the prediction market concerning Bitcoin“s next trajectory, 82% of participants are betting on a price increase to $100,000 before any potential drop to $69,000. However, a separate market inquiry about Bitcoin achieving a new all-time high before July indicates that 73% of traders do not foresee this outcome.
From a technical analysis perspective, Bitcoin has rebounded from lows near $80,000 since November, managing to break above the Ichimoku Cloud—a series of moving averages that delineate support and resistance zones—before retreating to the $93,000 range. The golden cross, which signifies a bullish trend when the short-term moving average crosses above the long-term average, remains intact but is displaying a narrowing gap that could spell trouble if Bitcoin fails to reclaim the EMA50.
The Average Directional Index (ADX) currently registers at 32.7, indicating a strong trend is in play. This measure of trend strength does not account for direction but suggests that the overall bullish sentiment from the past two months remains intact. The Relative Strength Index (RSI) is positioned at 54.1, reflecting a neutral stance with no clear inclination towards buying or selling.
For traders, the pivotal level to monitor is whether Bitcoin can recover and stabilize above $95,000 this week to maintain the golden cross narrative. Conversely, a weekly close below $91,000 could shift the short-term structure to bearish, potentially leading to another decline toward December”s lows.
