Bitcoin (BTC/USD) is trading at $95,800, down nearly 6% in the past 24 hours. The drop below $97,200 ended BTC’s previous bullish momentum. Furthermore, the formation of “tweezer tops” and bearish engulfing formations signal the risk of further declines.
Nearby support levels are listed at $94.267, followed by $91.868 and $89.620. On the upside, resistance is found at $97.247, $99.561 and $102.607.
The RSI is currently at 36, indicating oversold conditions, but bearish momentum is still there. The 50 EMA at $97.105 is acting as dynamic resistance, reinforcing this bearish move.
Institutional investor demands, such as MicroStrategy’s $101 million Bitcoin purchase and Metaplanet’s plan to purchase 10,000 BTC, have been instrumental in Bitcoin’s rise to the $100,000 level. However, the recent correction suggests a shift in investor sentiment, which could be due to regulatory uncertainty.
The $5 million settlement with the US Commodity Futures Trading Commission (CFTC) shows that US regulators are increasing their scrutiny of crypto products. This highlights the difficulties in providing regulatory clarity. However, if the Donald Trump administration pursues crypto-friendly policies, Bitcoin optimism can be expected to increase.
Conservative Party Leader Pierre Poilievre of Canada has hinted that his country’s policy on cryptocurrencies could be changing, with Canada promising to make Canada a “crypto mecca.” A potential policy change in Canada could boost Bitcoin’s international relevance and allow the price to trend more steadily above $100,000 as institutional adoption increases.
Pro-crypto policies, blockchain innovations, and innovation trends continue to support Bitcoin's long-term growth.