Bitcoin Breaks Support Levels, RSI Divergence Suggests Potential Reversal

Bitcoin is experiencing a critical decline as support levels continue to break, causing market anxiety. Despite the bearish trend, the RSI (Relative Strength Index) indicates a potential momentum shift with a bullish divergence appearing, suggesting possible future changes.

Support Levels and Market Sentiment

Bitcoin recently breached the $93,000–$95,000 support zone, highlighting current market fragility.
The next key support area is between $86,000 and $87,500, where buyers might attempt to stabilize the price.
If Bitcoin maintains this range, a short-term reversal could occur, though confirmation is needed for a sustained momentum change.
Failure to hold this support may lead to another significant drop, described as a "waterfall" scenario by analysts.

Bullish Divergence on 4-Hour Chart

A notable bullish divergence has been observed between Bitcoin's price action and the RSI on the 4-hour chart, indicating sellers may be losing control.
For a bullish market structure, Bitcoin must first create a higher high to break the downtrend, followed by establishing a higher low to confirm buyer dominance.