• Bitcoin may drop further before forming a local bottom, with $88,250 as a key threshold.
• BTC dominance fell below 59%, signaling potential continuation of a bearish market trend.
• Technical indicators, including RSI, MA Ribbon, and MACD, show ongoing selling pressure.

Bitcoin (BTC) is seen experiencing weak price performance as its market dominance dips below significant support thresholds. Analysts suggest that it may continue falling before making a local bottom. The market is keeping a keen eye on significant thresholds, which will help understand whether its downtrend is sustained or steadies.

At the time of writing, Bitcoin is trading at $86,051 with a 24-hour trading volume of $148.22 billion and a market capitalization of $1.72 trillion. The BTC price decreased 6.97% over the last 24 hours.

Bitcoin Dominance Drops Below Key

Crypto analyst More Crypto Online has recently commented on BTC market actions, focusing this time on Bitcoin Dominance (BTC.D), which represents Bitcoin’s dominance over the cryptocurrency market as a whole.

The analyst points out that the BTC Dominance index has broken below a small support level of 59%. This could be seen as an indication of an even stronger bear market if it breaks below 57%. The “yellow scenario” is, however, still in effect as long as it stays below 61.36%.

BTC Approaches Key Support Level

As far as BTC price movement, More Crypto Online stated that Bitcoin seems to be moving along with a proposed pattern of microstructure. Crossing $88,250 will be the first sign that a local bottom has indeed been reached.

Before that happens, however, there is no indication of reaching a bottom at all. Currently, BTC may drop slightly to finish out the last movement in its pattern.

The market, as a whole, is at a crucial level, and market participants are waiting to see whether Bitcoin can find support or if further decline is to be expected.

Also Read | Bitcoin Faces New Local Low at $89K as Market Sentiment Turns Bearish

Bitcoin Slides Into Weekly Pressure

The RSI is seen at 35.41, making it quite evident that it is showing weakness as buyers are no longer in control. The MA Ribbon is also showing bearish signals, with the price remaining below major levels such as SMA 20 at 102,661 and SMA 50 at 112,000.

The MACD shows more weakness, with its line at –3,739 and its signal line at –2,887, with its bearish gap widening. The histogram at –852 shows strong bears gaining momentum. All these indicators demonstrate that market sellers continue to dictate market trends, which are moving lower.

Also Read | Bitcoin (BTC) Sparks Urgent Review of Kenya’s Crypto Law as New ATMs Hit Shopping Malls