Bearish view

• Sell the BTC/USD pair and set a take-profit at 85,000.
• Add a stop-loss at 94,000.

Bullish view

• Buy the BTC/USD pair and set a take-profit 94,000.
• Add a stop-loss at 85,000.

(Click on image to enlarge)

Bitcoin price retreated for six consecutive days, reaching its lowest level since January 3 as the crypto market crash accelerated. The BTC/USD pair dropped below the key support level at 90,000, down by 9% from its highest level this year.
 

Bitcoin Price Crashes Amid Risk-On Sentiment

The BTC/USD pair has been in a strong downward trend in the past few days as demand for risky assets accelerated. Bitcoin dropped below the key support at 90,000, mirroring the performance of other risky assets.

The Dow Jones, S&P 500, and Nasdaq 100 indices dropped by over 0.50%, continuing a decline that started last week. Other global indices like the Nikkei 225 and the Hang Seng dropped for the second consecutive day.

This decline happened because of the ongoing geopolitical events, especially on Greenland, an island that Donald Trump has insisted he wants to take. The European Union has threatened to respond to the ongoing provocations.

Bitcoin price also declined because of the happenings in Japan, where government bonds tanked. Data shows that the 40-year yield is soaring to the highest level in decades. Similarly, short and medium term yields soaring to the highest level in decades, a sign that the Bank of Japan (BoJ) will continue hiking interest rates in the coming meetings.

Bitcoin price dropped because of the ongoing spot BTC outflows. Data shows that outflows have continued in the last two consecutive days, a sign that demand has waned.
 

BTC/USD Technical Analysis

The daily timeframe chart shows that the BTC/USD pair has crashed in the past few days, moving from a high of 97,790 earlier this month to the current 89,340. It has moved below the important support level at 94,392, the upper side of the ascending triangle pattern.

The pair has moved to the lower side of the triangle pattern. Also, it moved below the 50-day and 100-day Exponential Moving Averages (EMA). Also, the two lines of the Percentage Price Oscillator (PPO) have formed a bearish crossover.

Therefore, the pair will likely continue falling as sellers target the next key support level at 85,000. On the flip side, the pair will likely rebound to the next key resistance level at 94,395.

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