Bears test Bitcoin support after sharp intraday slide, $90,000 in play

Bitcoin slid more than 4.5 % from its May 19 intraday top, tumbling to about $102,000 and flashing the first notable bearish divergence in over a month. The retreat sparked warnings that the market could pierce the psychologically important $100,000 mark if buyers fail to defend near-term support. Divergence hints at trend reversal Technical analysts flagged a lower high in the relative strength index versus a higher price high, a classic sign of waning momentum. Chartist Bluntz cautioned traders to “be careful with [placing] longs” until the signal plays out or is invalidated by a strong rebound. Swissblock research showed Bitcoin had “grabbed liquidity” above the $104,000–$106,000 band but lacked follow-through, leaving price vulnerable to a deeper pullback. Key zones come into view Volume-profile data identifies $97,000–$98,500 as heavy support if the immediate $101,500–$102,500 floor dissolves. Failure there would open the way to a potential inverse head-and-shoulders retest around $91,000, where the 50-period EMA sits on the three-day chart. Such a move would echo reversals seen in December 2024 and January 2025, when repeated rejections at the $107,000 neckline preceded sizable drawdowns. Longer-term outlook intact Despite near-term weakness, the broader structure still points to a possible surge toward $150,000 once consolidation completes and the neckline flips to support. Macro drivers, including Moody’s weekend downgrade of U.S. sovereign credit, have added stress to risk assets but could ultimately aid Bitcoin if dollar softness persists. Derivatives markets show funding rates resetting toward neutral, suggesting leverage has been flushed and setting the stage for a healthier advance when momentum returns. For now, bulls must prove their resilience by preventing a decisive daily close beneath $100,000, or risk ceding control to short sellers eyeing deeper value zones.

Source: CryptoIntelligence