From a technical perspective, Bitcoin's current price trend is testing multiple key support levels. According to market technical analysis, Bitcoin may again test the psychological level around $90,000, which is generally considered an important liquidity area. If it falls further, Bitcoin could drop to $85,000 or even lower. The reason is that Bitcoin has experienced a very rapid rise since November 6, and during this process, there has not been a significant imbalance between buying and selling. Such rapid rises are usually accompanied by corrections to balance the market supply and demand.
The Relative Strength Index (RSI), as a quantitative tool for market sentiment, has fallen below 50 for the first time since November 6, indicating that selling power is increasing. In this case, sellers may dominate the market in the coming week, leading to Bitcoin's price consolidating below $90,000 for some time. Crypto research analyst CoinSeer also pointed out that Bitcoin's important support level below is in the $85,000-$88,000 range, and once it falls below this range, it could trigger large-scale liquidations.
