Bitcoin has fallen below $90,000 for the first time since April, continuing a steep correction that began earlier this month. The decline accelerated last week when the price slipped below $100,000 for the first time since June. As of writing, Bitcoin is trading near $89,965 – down nearly 6% over the past 24 hours and over 14% for the week.
The breach of the $97,160 level, corresponding to the 78.6% Fibonacci retracement zone, has turned it into a significant resistance area. The next technical support is seen at $89,254, which aligns with the 100% retracement level.
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Indicators Signal Oversold Conditions, But Trend Remains Bearish
Short-term momentum indicators are now deep in oversold territory. The Relative Strength Index (RSI) is at 18 on the 7-day scale and 27 on the 14-day scale, among the lowest readings in over a year. Bitcoin is also positioned along the lower Bollinger Band (~$90,274).
Despite this, the trend structure has not shifted. The Average Directional Index (ADX) is currently at 39, indicating that bearish momentum remains strong. As long as the ADX stays elevated, the market may continue to experience downside pressure, even if brief rebounds occur.
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Sentiment Index Stays Low
The wider cryptocurrency market has followed Bitcoin lower. Most major coins have posted similar losses in recent days, and total market capitalization continues to shrink.
The crypto Fear and Greed Index is now at 11, signaling extreme fear for the sixth straight day. Bitcoin has also now given up its gains for the year, being down 1.5% in the yearly picture.
ETF outflows, broader market liquidations, and global macroeconomic concerns have all contributed to the ongoing correction. For now, technical signals reflect a market that is oversold on short-term metrics, but still trending downward. Further price direction will likely depend on whether support at $89,254 can hold – and whether sentiment can begin to recover from current extreme levels.
Read also: Crypto Sentiment at Record Low: Fear and Greed Index Hits 10 for Second Day
