Bitcoin (BTC) is holding steady at $93,257, a key support level that could determine the next major move. Like a battle between bulls and bears intensify, the stakes are high: an effective defense can restore momentum, while a break below can result in significant losses.

As the market is at this crucial juncture, the purpose of this article is to analyze BTC’s current position at the critical support level of $93,257, examining the factors influencing the price movement. By examining key technical indicators and market dynamics, the goal is to assess whether the bulls will be able to defend this level and potentially lead to a rebound, or whether a break below may result in deeper losses.

Analysis of Bitcoin’s recent price action

Bitcoin stands ahead bearish trend, trying to break below the support level of $93,257. If this situation continues, BTC could test the 100-day SMA on the 4-hour chart, which could act as support or signal further weakness. Failure to stay above this level could lead to a deeper decline adjustment and possibly more noticeable losses towards lower support zones.

The 4-hour Relative Strength Index (RSI) analysis shows that BTC may continue to decline as the RSI has dropped to 35%, indicating increasing selling pressure. A reading below 50% suggests weakness bullish trend and increases the probability of further declines. If the RSI continues to decline, it could signal that Bitcoin is entering a prolonged bear phase.

Despite trading above the key 100-day SMA, Bitcoin is showing forceful negative momentum on the daily chart, highlighted by bearish candlesticks and rising sales pressure. This suggests that the cryptocurrency is struggling to maintain its upward momentum, and if the downtrend continues, it could lead to vast corrections and test lower support levels.

Finally, the RSI on the daily chart dropped to 63% from the overbought zone, signaling a change in market sentiment. This means that buying the pressure is decreasing and the growth dynamics may be weakening. A move away from overbought territory may signal the beginning of a consolidation phase or the beginning of a corrective pullback.

Potential scenarios: rebound or collapse?

As Bitcoin tests key support levels, a bounce or crash is expected. So, if the bulls manage to defend critical levels such as $93,257, BTC will rebound, gaining upward strength and reaching its previous high of $99,575. Moreover, a break above this level could pave the way for the digital asset to stabilize modern highsextending the upward trend.

However, if selling pressure intensifies and BTC successfully breaks below the $93,257 level, it could fall through key support zones, potentially causing further declines towards the $85,211 support range and beyond.

Featured image from Adobe Stock, chart from Tradingview.com