Bitcoin Plunges to $92K: Is a Relief Rally Coming or More Losses Ahead?

Bitcoin (BTC) was trading at $92,420.11 at press time, marking a -2.63% decline in the last 24 hours and a -4.05% drop over the past week. 

Meanwhile, its 24-hour trading volume stands at $66.58 billion, with a circulating supply of 20 million BTC. Bitcoin’s market cap is currently valued at $1.83 trillion, as traders navigate a period of volatility early in the new Four-Year Cycle.

Bitcoin’s Four-Year Cycle: A Bull Market in Progress

According to crypto analyst Rekt Capital, Bitcoin is in the first year of its new Four-Year Cycle, a phase typically marked by strong price growth following the 2024 halving. Reduced supply and increased demand historically drive this period, often leading to a parabolic rally as the cycle progresses.

Rekt Capital noted that the current green candle on the yearly chart represents the strongest phase of Bitcoin’s bullish growth. The analyst added, “2025 will be the year of the $BTC Bull Market peak,” indicating a potential climb in Bitcoin’s price to surpass previous cycle highs. 

Key levels such as $46,041 from 2021 have already been surpassed, further confirming Bitcoin’s growth phase.

Short-Term Price Analysis: Support and Resistance Levels

On the 4-hour chart, Bitcoin is exhibiting bearish momentum, with the price slipping below the middle Bollinger Band at $97,315. BTC is approaching the lower Bollinger Band at $90,752, which serves as immediate support. If this level fails, Bitcoin may test the psychological $90,000 level.

The RSI is currently at 30.58, nearing oversold territory. This suggests that selling pressure may be overextended, increasing the potential for a short-term rebound. However, the downward trend in the RSI indicates continued bearish momentum. 

Resistance is identified at $97,315, and a breakout above this level could signal a recovery toward $103,879, the upper Bollinger Band.

Network Activity: Adoption and Participation Rising

Recent data from IntoTheBlock shows a 7-day increase in Bitcoin’s New Addresses (+15.29%), Active Addresses (+12.12%), and Zero Balance Addresses (+9.08%). The growth in New Addresses indicates rising interest and adoption, while the rise in Active Addresses reflects stronger network participation.

The increase in Zero Balance Addresses suggests fund movements, potentially indicating profit-taking or transfers to exchanges. These trends signal renewed interest in Bitcoin, as investors monitor on-chain metrics to gauge market sentiment and possible price movements.

Monitoring Key Levels for Bitcoin’s Next Moves

Traders are closely watching the $90,752 support zone, which, if held, could trigger a relief rally. Conversely, failure to maintain this level may lead to further declines. Resistance at $97,315 remains critical, and breaking above this barrier could indicate a potential shift toward a bullish recovery as 2025 progresses.

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