Bitcoin is currently at a critical juncture as major technical analysis metrics are indicating a shift in momentum. RSI analysis has indicated that the recent readings are below a major level, indicating a slightly bearish zone. Leverage in the derivatives market has decreased.

At the time of writing, Bitcoin is trading at $90,299 with a 24-hour volume of $41.61 billion and a market capitalization of $1.81 trillion. Over the last 24 hours, BTC dipped by 0.33%, indicating that it is in a period of consolidation after it reached its peak.

Bitcoin RSI Drops Below Key Level

Crypto analyst EGRAG CRYPTO also explained that Bitcoin’s RSI has fallen below 60, indicating a transition in the market’s momentum. “I thought that the RSI would stay above 60 and aim for the 80-90 zone for a cycle top. However, RSIs’ break below 60 altered the market structure,” he wrote.

This means that BTC is currently in a neutral to slightly bearish area, but it is showing some tendencies through its RSI slope that are slightly positive. This area in the past functioned as a “decision area,” and it may see its next major movement.

The RSI level of 60 is an essential component, and a break above it can signal the start of moving on with the bull trend, with the target set in the 80 to 90 region. A failure at this level can result in additional ranges or a transition to the 38 region.

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Bitcoin Derivatives Signal Key Turning

Moreover, Crypto Patel observed that open interest in Bitcoin futures is currently at its lowest point since 2022, “indicating a decrease in the use of leverage, and that the rest of the speculation is covered.” This shows that the derivatives market for Bitcoin is not performing well, and that the “price action in BTC will soon be driven by demand.”

Given the indications of a cautious but vigilant market in technical analysis and derivatives markets, the price movements of Bitcoin in the next few weeks are sure to be closely watched.

A return to key levels for RSI can trigger a fresh wave of buying in the market, while a failure at the support level can trigger a period of market consolidation. For crypto followers, the developments signal an important phase in determining the BTC market trend.

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