The cryptocurrency market has seen a significant setback for the recovery momentum since last week, as the Bitcoin price has experienced a bearish reversal, reverting from $99,800. This reversal was initially driven by exhausted buyers, but it has now been further accelerated by a long squeeze and concerns over today’s FOMC minutes.
At the time of this writing, the Bitcoin price has traded at $93,400, with an intraday gain of 0.4%. According to Coingecko, the asset’s market cap has surged to $1.84 trillion, while the 24-hour trading volume hovers at $123.60 billion. The bearish reversal for Bitcoin has gained momentum as over-leveraged BTC longs get liquidated.
A potential breakdown below $90,000 could encourage BTC buyers to replenish the exhausted bullish momentum. The fast-moving 20- and 50-day exponential moving average serves as immediate support for market buyers as BTC enters the post-rally correction. Over the weekend, the Bitcoin price plunged from $99,800 to $93,000, marking a 6.8% loss.
The bearish reversal was fueled by the liquidation of over-leveraged long positions and concerns over today’s FOMC meeting and Wednesday’s PCE data. The crypto market has witnessed a liquidation of $679.2 million, according to Coinglass. However, investors view the current pullback as a post-rally pullback for buyers to recuperate the exhausted bullish momentum.
The momentum indicator RSI (Relative Strength Index) has reverted from 80%, accentuating the slight overbought state for BTC and the need for correction. If the bearish momentum persists, the Bitcoin price could plunge 4.2% to seek support at $90,000. By November’s end, the coin price could consolidate around $90k before the next leap.
Key supports for BTC if the correction extends include the daily EMAs (50, 100, and 200). Historically, data shows an average pullback of 9-11% before BTC continued its upward trajectory. Thus, the coin price could rebound from the $90k level, coinciding closely with the 20-day EMA. If the correction prolongs, the daily EMAs (50, 100, and 200) could act as the next immediate support.
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<p>The post Crypto Market: Bitcoin Price Plunge and Bearish Reversal Momentum first appeared on CoinBuzzFeed.</p>
