3 bearish factors that could lead to Bitcoin falling below $90,000

Cryptocurrency analysts express caution Bitcoinof Bitcoin/USD Recent price action suggests continued government selling, market liquidity issues, and uncertainty in the altcoin market are all bearish factors.

What happened: Anonymous analyst Altcoin Sherpa expressed a lack of buying pressure and warned that the ongoing government liquidation of Bitcoin could bring selling pressure.

He also warned that over-leveraged traders could face significant losses if Bitcoin falls below the $90,000 level, leading to a possible drop to the mid- to low-$80,000 range under certain circumstances.

Sherpa said absorbing the sell-off is not guaranteed, meaning Bitcoin faces an unstable situation.

Analyst Kevin backed up Sherpa’s analysis, noting that the monthly liquidity heat map showed a large amount of long liquidity being liquidated.

Still, there is “considerable liquidity” down to $89,000 to $90,000 levels, and if these levels are reached, a strong rebound is possible.

Highlighting a key test facing the altcoin market, Kevin revealed that the total altcoin market cap is currently testing the daily supertrend and 100-day exponential moving average on the daily timeframe for the second time in a month.

Kevin said that if history is any indication, losing this support level during a bull market typically results in a sharp decline, making this area extremely important to the health of the market.

He also pointed out that the current moment will determine whether the cryptocurrency market still operates in a cyclical manner, or whether past performance has only been affected by easy monetary policy.

Also Read: Analysts Believe Bitcoin Silk Road Sales Will Impact Leveraged Traders More Than Holders

Why it’s important: Both experts expressed serious concerns about the near-term future of the market, saying that if key support levels are breached, highly leveraged traders could suffer significant losses and altcoin markets could experience significant declines.

As of this writing, Bitcoin price is down approximately 0.2% in the past 24 hours to $94,220.

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