Bitcoin has slipped into a critical danger zone, breaking key support levels and signaling strong bearish pressure. while an rsi bullish divergence hints at a potential short-term turnaround, failure to hold the $86,000-$87,500 range could lead to a 'waterfall' scenario.
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The immediate price action is bearish, with bitcoin extending its downtrend and breaking support levels. however, a bullish rsi divergence on the 4-hour chart suggests sellers might be losing control, hinting at a possible, unconfirmed short-term reversal if the $86,000-$87,500 support holds.
The analysis focuses on current support levels, immediate downtrend, and potential short-term reversals based on 4-hour chart signals, indicating a near-term outlook.
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Bitcoin has slipped into a critical danger zone as support levels continue to give way, putting the market on edge. Amid this decisive breakdown, the RSI is quietly flashing a bullish divergence, a subtle but meaningful early signal that momentum may be preparing to shift. The charts now paint a tense picture: bearish pressure remains dominant, but the first signs of a potential turnaround have appeared. Support Levels Crumble As Bitcoin Extends Its Downtrend According to an update shared by Crypto Candy on X, Bitcoin continues to break through support levels with little hesitation. The price held the $93,000–$95,000 zone for a brief period, but eventually failed to maintain that structure, triggering another move to the downside. The speed of each breakdown highlights how fragile market sentiment currently is. Related Reading Bitcoin SSR Flashes Buy Signal: Rebound Incoming? 1 day ago With the most recent support now lost, Bitcoin has slipped to lower levels and remains under bearish pressure. If this momentum persists, Crypto Candy noted that the next area of interest lies between $86,000 and $87,500, a major support where buyers may attempt to slow or halt the decline. BTC eyes brief rebound | Source: Chart from Crypto Candy on X Should Bitcoin manage to hold within this $86,000–$87,500 range, a short-term reversal becomes possible. Even a modest bounce could provide temporary relief to the broader downtrend. However, such a reaction would still require confirmation before hinting at any sustainable shift in momentum. If that support fails to hold, Crypto Candy warns that the market could face another steep drop . A continued breakdown would reinforce the ongoing bearish narrative, opening the door for what he described as a “waterfall” scenario. Bullish Divergence Emerges On The 4H Chart Crypto analyst Chad recently noted in an X post that Bitcoin is showing a notable bullish divergence between its price action and the RSI (Relative Strength Index) on the 4-hour chart. This divergence is a technical signal where the price makes a lower low. Related Reading Bitcoin Price Alert: This Indicator Signals SELL, Could History Repeat With A 67% Drop? 23 hours ago Chad acknowledges that the price is clearly in a short-term downtrend and will need to reverse at some point. While he admits he doesn’t know the exact timing of the reversal, he emphasizes that the bullish divergence is the first positive sign that sellers are losing control and a structural shift may be near. To officially switch the short-term market structure back to bullish, Chad outlines a simple progression: the price needs to first make a higher high to break the current downtrend, and then confirm that break by establishing a higher low. This sequence is necessary to confirm that buyers have successfully taken over directional control of the price. BTC trading at $91,376 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Pngtree, chart from Tradingview.com