Bitcoin’s slip under $90,000 shows a classic sharp correction after an overextended rally.
Overheated RSI (Overbought Zone)
BTC’s RSI had been sitting above 70, signaling heavy overbought conditions. This often triggers a pullback as buyers slow down and sellers step in.
Major Resistance Rejection
Bitcoin failed to hold above the $94,000–$96,000 resistance zone. Weak momentum at the top created a perfect setup for a downward move.
High Leverage Liquidations
Exchanges saw liquidations of over-leveraged long positions, accelerating the drop. Once cascading liquidations begin, BTC usually falls sharply.
Weakening Volume on the Upside
Volume was dropping during the recent push upward — a classic sign of trend exhaustion. When sellers returned with stronger volume, the price broke down fast.
Support Levels Broken
BTC sliced through key supports:
$92,500
$91,200
$90,500
Breaking multiple supports in a row turned the drop into a deeper correction.
📊 What’s Next? (Important Levels)
Immediate Support: $88,800 – $89,200
If this zone holds, BTC can bounce quickly.
Major Support: $85,500
If this breaks, the correction could extend.
Resistance to Reclaim: $90,500
Reclaiming this level wo
uld be the first bullish signal after the fall.
