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Title: Is Bitcoin About to Crash Below $90,000 Soon? (Bitcoin Price Analysis)
Bitcoin’s price has been struggling to break above the $100,000 resistance level, leading to a consolidation phase below this threshold. This uncertainty has sparked concerns about the future direction of the market. In this article, we will examine the technical and sentiment analysis to provide insights into the potential short-term price action.
Technical Analysis
The daily chart showcases Bitcoin’s inability to continue its upward momentum since dropping below $100,000. The recent failure to break above this level has led to a downward consolidation, with the $90,000 support level emerging as a potential target in the short term. How the market reacts at this juncture will be crucial in determining the direction of price action for Bitcoin.
The 4-hour chart offers a more detailed perspective on the recent price action. Initially, the market was developing an ascending channel, with higher highs and lows. However, it has since broken out of this pattern to the downside and retested it twice. With the relative strength index (RSI) displaying values below 50%, indicating bearish momentum, a potential drop towards $90,000 is more likely before any potential bullish continuation.
Sentiment Analysis
Open interest in Bitcoin futures has been at all-time highs, even with the market below $100,000 and failing to trend. This development may indicate heightened volatility in the short term, brought about by liquidation cascades. As a result, investors are advised to exercise caution when entering positions at present.
Overall Conclusion
Based on our analysis, it seems that Bitcoin’s price may be headed towards the $90,000 support level before potentially recovering or continuing its decline.
Source: cryptopotato.com
