Bitcoin seeks support above $9,100 after dipping to $8,980

The slump marked the second time in a month that bitcoin dipped below $9,000. Traders have been targeting $10,000 for weeks, but this failed breakout suggests they'll face more obstacles before reaching that level.

Asia provided some support during Wednesday's session, with buyers pushing the price higher at times. Sellers held control for most of the day. The 4-hour technical picture confirmed it. The RSI remained in oversold territory even as it rose, while the MACD stayed negative with signs of bearish divergence. If sellers renewed their push downward, these readings suggested prices would break lower again.

Trading volume jumped $2 billion above Tuesday's $7.7 billion, showing traders were unwinding positions at an accelerated pace. This uptick in transaction volume signals urgency among participants. If selling continued at this pace, bitcoin could test $8,900 again. Reaching $9,300 or $9,400 would require sentiment to shift within hours.

The decline accelerated as volatility contracted in recent months, leaving traders with fewer tools to hedge risk. One metric stood out from all the technical data: miners began dumping bitcoin at record levels. Glassnode reported what it described as "the largest flow of bitcoin from miners to exchanges in over a year." Bitfinex received the majority of those coins. The last comparable outflow occurred in November 2019, an event that preceded mounting selling pressure in the subsequent weeks.