Bitcoin’s price has retreated to $94,500 after missing the much-anticipated breakout above $100,000. Three key indicators suggest further declines, potentially taking prices below $90,000.
A negative risk reversal on Deribit indicates a bias towards protective puts, with call options trading at a cheaper valuation than puts. This suggests that traders are preparing for potential losses and may be exiting long positions.
Weakened demand from Coinbase, a leading source of bullish pressure, has also contributed to the price slide. The discount in BTC prices on Nasdaq-listed Coinbase compared to offshore giant Binance indicates vulnerability to negative news.
A divergence between Bitcoin’s price and the relative strength index (RSI) suggests that the bullish momentum has run its course for now. While prices tapped a new high above $99,000 on Friday, the RSI did not, indicating potential losses ahead.
The intraday charts indicate support between $87,000 and $88,000, which could serve as a floor for further declines.
Source: https://www.tradingview.com/news/coindesk:761c8b024094b:0-three-reasons-why-bitcoin-risks-falling-below-90k-godbole