Key Points
- Bitcoin faced a possible bearish continuation after reaching around $89K and experiencing a rejection.
- The cryptocurrency could potentially reach between $98,000 to $100,000 if it surpasses the resistance point at $91,000.
Bitcoin recently entered the short liquidity cluster at $88K, with the following liquidity cluster positioned at $83K. The bid ask ratio across both depths was found in the negative region, while the True Retail Accounts long% on Binance was recorded at 39.1%.
Bitcoin’s Bearish Indications
Bitcoin’s sweep at $88,000 resulted in a dense area of liquidations within the short-term market. Historically, Bitcoin has seen weekly highs on Mondays, with this week’s sweep being no different. If the price rise above this liquidity area is not maintained, a potential market reversal towards $83,000 could be triggered.
Several bearish market factors became evident during Bitcoin’s rise past $88K, surpassing the psychological supply and demand levels between buyers and sellers. Both the 2% and 5% depths showed more sellers than buyers, indicating red candle zones. Previous market conditions that produced such price imbalances resulted in either sudden price corrections or price stabilizing periods.
Price Predictions
The ongoing bearish imbalance may drive Bitcoin prices below $88,000 and push them towards different support levels. The price might overcome expectations during its upward trajectory if buyers take on the sell-side pressure in the way they did during the green-zone periods of early April.
For its price action, Bitcoin reached $87,000 yet met intense resistance from the intersection of the 200-day moving average and 100-day moving average which created a resistant zone between $88,000 and $91,000. The middle area of this essential consolidation zone existed at the same point where selling pressure intensified.
Bitcoin could begin an upward movement towards $98,000 to $100,000 if it managed to exceed the resistance point at $91,000. Failure to defend $84,000 could trigger an extended market decline towards $76,000. A potential upward reversal from the previous price decrease yet resistance failure could activate a downturn unless the uptrend received confirmation through increased volume.
