Bitcoin Price Dip: Will it Fall to $92k?

Bitcoin (BTC) experienced a recent price correction, dropping from nearly $112,000 to $101,300. While on-chain metrics showed cautious optimism, the market lacked momentum, and sentiment shifted towards fear.

Although the correction to $100,000 didn't trigger extreme fear, analysis suggests a further dip to $92,500 is possible if the $97.9k-$100.7k fair value gap fails to act as a demand zone.

Fear & Greed Index Trends

The Crypto Fear & Greed Index, which recently reflected neutral to fearful sentiment, provides insight into market sentiment. While concerning, the current sentiment isn't as negative as seen in April. The index suggests market participants aren't anticipating a deeper correction, raising the question: could this lead to a drop to $92,000?

Source: Alternative.me

Source: CoinStats

Bullish sentiment lasted for almost two months but has recently decreased to neutral levels. This could resemble the market conditions of March. A sustained drop below the $98,000-$100,000 range could further worsen bearish sentiment.

Technical Analysis

Technical analysis of the weekly Bitcoin chart reveals the $97,900-$100,700 range (white box) as a fair value gap, acting as support. Fibonacci retracement levels indicate potential support at $93,200, $88,800, and $82,500 if the $98,000 level is broken. The On-Balance Volume (OBV) doesn't show significant selling pressure on the weekly chart.

Source: BTC/USDT on TradingView

The six-month liquidation heatmap suggests $92,600 as an attractive price target. Considering macroeconomic uncertainty, a correction to $94,000 remains possible. Liquidity clusters could also contribute to further price drops.

Source: Coinglass

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice.