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Is Bitcoin About the Crash Below $90,000 Soon? (Bitcoin Price Analysis)
Bitcoin’s price has been unable to sustain its upward momentum since dropping below the crucial $100K resistance level. This sudden lack of direction has left many investors uncertain about the cryptocurrency’s future trajectory.
In a detailed analysis, CryptoVizArt examines the technical and sentimental factors that might determine Bitcoin’s short-term price action.
According to TradingRage’s Edris Derakhshi, an analyst at CryptoPotato, the daily chart shows a clear consolidation below $100K. The market has been unable to break this level, which has resulted in a brief rejection to the downside. This bearish reaction makes it more likely that the price will target the $90K support area before potentially resuming its upward trajectory.
A closer look at the 4-hour chart reveals a broader picture of sideways price action. Initially, the market was creating higher highs and lows within an ascending channel. However, this trend has since been broken to the downside, with the RSI also indicating bearish momentum by displaying values below 50%. Given these factors, it is plausible that Bitcoin’s price will drop towards $90K before a potential bullish continuation.
In addition to this technical analysis, CryptoPotato examined the open interest metric in the Bitcoin futures market. This indicator has been at an all-time high, even after the cryptocurrency dropped below $100K and ceased trending. This unexpected development could signify significant volatility in the near term, potentially caused by liquidation cascades. Consequently, investors are cautioned against taking any actions without carefully considering their own risk tolerance.
As always, it’s crucial to stay vigilant and conduct your own research before making any investment decisions.
For more Bitcoin price analysis and market updates, be sure to follow CryptoPotato on social media for the latest insights from our team of experienced analysts.
Source: cryptopotato.com
