Bitcoin Faces Continued Decline: Key Support at $93,000 as Market Sentiment Shifts

Bitcoin has experienced a notable decline over the past three days, following a peak at $97,865 on May 2nd. Currently, the cryptocurrency is trading at a low of $93,445. Data from Coinglass reveals that approximately $116.32 million in Bitcoin long positions has been liquidated, signaling a concentrated market leverage and a significant stop-loss trigger as traders react to the recent market contraction. The funding rate shift from positive to negative underscores a diminishing bullish sentiment among market participants.

Despite a reduction in overall trading volume, the proximity of Bitcoin to the critical support level of $93,000 suggests a possible recalibration of market sentiment towards caution in the near term. Analysts from Bitunix highlight the importance of monitoring $93,000 as the immediate support; a breach below this level may lead to further declines towards $90,000. Conversely, the resistance zone remains between $97,800 and $98,000. Traders should remain vigilant this week, particularly in light of upcoming economic indicators and the forthcoming FOMC decision, which could escalate market volatility. Flexibility in position adjustments is essential to mitigate risks associated with both macroeconomic and cryptocurrency market fluctuations.