Bitcoin Breaks Its Most Important Support – Analysts Warn of a Much Deeper Collapse

Key Takeaways

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  Bitcoin has fallen below the critical $93,000 support level, triggering significant selling pressure.
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  Key technical indicators, including the SuperTrend, RSI, and MACD, have all turned bearish.
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  Institutional investors, notably BlackRock, are reportedly selling Bitcoin through their ETFs, exacerbating outflows.

The $93,000 zone, which had served as a strong price floor for several months, has now been decisively breached. Analysts are cautioning that a failure to reclaim this level quickly could lead to a more substantial market correction.

The overall sentiment in the cryptocurrency market has undergone a rapid transformation. A confluence of bearish signals from major technical indicators, coupled with intensifying institutional outflows and deteriorating on-chain momentum, has prompted traders to re-evaluate the optimistic outlook that characterized the early part of 2025.

SuperTrend Indicator Flips Bearish

Market analyst Ali pointed out that Bitcoin's weekly SuperTrend indicator has officially shifted to a "sell" signal. This rare reversal previously occurred during a significant market downturn where Bitcoin experienced a 67% decline in value.

While past performance is not indicative of future results, this signal is often interpreted by traders as a strong warning of potential prolonged downside risk, particularly during periods of diminishing demand and substantial spot market selling.

Institutional Pressure Mounts with BlackRock Selling

Further fueling concerns, data shared by Crypto Rover indicates that BlackRock has been actively selling Bitcoin through its Exchange Traded Fund (ETF) vehicle. This has raised fears that other major ETF issuers might follow suit. These institutional outflows are occurring at a time when Bitcoin has underperformed U.S. Treasuries over the past year, diminishing its attractiveness to more risk-averse capital.

This shift in ETF activity represents a significant departure from earlier months, when consistent inflows were a primary driver of Bitcoin's ascent toward $125,000.

Momentum Indicators Signal Downtrend

The spot market charts corroborate the bearish sentiment with several key indicators:

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  The Relative Strength Index (RSI) has fallen into oversold territory, currently hovering around 29. These levels were last observed during significant market sell-offs.
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  The Moving Average Convergence Divergence (MACD) has extended its downward crossover, suggesting a weakening of upward momentum rather than a mere temporary correction.

Collectively, these technical signals indicate a decline in buying strength, making a swift rebound less likely.

Derivatives Market Sees Spike in Liquidations

The derivatives market has experienced significant volatility, with over $329 million in positions liquidated within a 24-hour period. This figure includes $140.8 million in long positions and $188.6 million in short positions. The substantial liquidations on both sides of the trade indicate that sudden price swings are impacting traders across the board, with bullish positions being disproportionately affected.

High liquidation volumes often accompany trend reversals and can amplify downward price movements if panic selling intensifies.

Can Bulls Defend the Trend?

The $93,000 level was more than just a round number; it represented a critical structural support that had protected Bitcoin for months. With this support now broken, the responsibility falls on bullish traders to reclaim this level quickly.

If Bitcoin is unable to recover and consolidate above $93,000:

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  Multiple market models suggest that the mid-$80,000 range will become the next significant price target.
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  A further breakdown would substantially increase the likelihood of a full-scale macro bear market entering its initial phase.

Such a scenario would mark the first major trend reversal since the commencement of the 2024–2025 bull run.

Outlook

While Bitcoin has not yet entered a confirmed bear market, the market momentum has shifted dramatically. A decisive return above the $93,000 level could help stabilize market sentiment. However, with increasing institutional selling and sharply negative technical indicators, the path to recovery may prove more challenging than anticipated just weeks ago.

Currently, it is evident that Bitcoin is navigating one of the most critical junctures of this cycle, and bulls are facing increasing pressure.