Bitcoin Price Prediction: Analyst Forecasts $94K Correction
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Bitcoin's recent surge to $105,000 has sparked concerns about its momentum, despite a slight 0.03% gain in the last 24 hours. Analyst Captain Faibik points to a bearish RSI divergence as a key indicator of weakening buyer sentiment. This divergence, where the price rises while the Relative Strength Index (RSI) falls, often precedes a price correction. The RSI currently sits at 61.88, significantly lower than its recent peak near 80, suggesting waning buying pressure. Faibik predicts a pullback to the $92,000-$94,000 range, a correction he believes is likely given Bitcoin's failure to break through resistance levels around $108,000 and $109,000. Adding to the bearish sentiment, Bitcoin futures and options trading volume increased by 1.60%, while open interest fell by 1.30%, indicating some investors are closing their positions. Recent liquidations of $71 million in long positions further support this trend. While Bitcoin's 2022 rebound followed a different pattern, with strength building even as the RSI climbed from oversold levels, the current situation presents a different context. Higher interest rates and increased institutional involvement are factors that could influence Bitcoin's response to market signals. Therefore, Faibik cautions against relying on past patterns to predict future performance. This confluence of factors suggests a potential correction is on the horizon, with the $92,000-$94,000 range representing a likely support level.
