Will Bitcoin price drop to $86,000?

Bitcoin, which saw a modest rise over the Christmas period, has seen a decline recently. Market participants appear to be taking profits, putting downward pressure on the price of the leading cryptocurrency.

With weak buying activity, Bitcoin price may soon fall below the critical level of $90,000. This analysis explores some of the reasons behind this expectation.

Bitcoin bears are putting more pressure on

BTC’s decline is over The past few days have pushed its price below the leading line A (green line) of its Ichimoku Cloud indicator, where it is currently trading. This indicator tracks the momentum of an asset’s market trends and identifies potential support/resistance levels.

When the price of an asset falls below the main band A of the Ichimoku cloud, it indicates weak momentum and a potential bearish shift. The key band A represents a near-term support level, so a break below would indicate waning strength in the asset’s upside.

additional, Negative currency Chaikin Money Flow CMF confirms the decline in demand for Bitcoin. As of this writing, the index is below the zero line at -0.02.

Based on price and volume, the CMF indicator measures the strength of money flow into or out of an asset during a specific period. As is the case with BitcoinWhen its value falls below zero, it indicates that selling pressure is dominant, indicating more money outflow than inflow. This is a bearish signal indicating weak demand and potential downward momentum for the price.

BTC Price Prediction: Will $91,000 Support Hold?

Bitcoin’s next major support level, located at $91,488, may fail to hold if demand weakens further. In this scenario, the coin’s price could fall below $90,000 for the first time since early November to trade at $86,697.

However, if BTC is experiencing a rebound In buying activity, this could push its price above the $97,675 dynamic resistance offered by the leading band A of its Ichimoku Cloud. A successful breakout of this level could push BTC price towards revisiting its all-time high at $108,230.