news 
Title: Is Bitcoin About the Crash Below $90,000 Soon? (Bitcoin Price Analysis)
As of December 29, 2024, there is a growing concern among cryptocurrency enthusiasts regarding the potential crash of Bitcoin below the $90,000 mark. With Bitcoin’s price failing to break above the $100K resistance level and subsequently dropping off, experts are scrambling to predict the next course of action for this volatile asset.
Bitcoin Price Analysis: Daily Chart
On the daily chart, it is clear that Bitcoin has been consolidating beneath the $100K mark since its brief breakout. This failure to regain the previous highs raises concerns about a potential crash towards the $90K level in the short term. The reaction to this area will play a crucial role in determining the near-term price action of BTC.
The 4-Hour Chart
A more detailed analysis on the 4-hour timeframe reveals an even clearer picture of sideways price movement. A higher highs and lows trend, initially observed inside an ascending channel, has now broken down, indicating bearish momentum. Furthermore, with the Relative Strength Index (RSI) exhibiting values below 50%, the market seems likely to plummet towards $90K before any potential bullish continuation.
Open Interest: An Indicator of Volatility
Sentiment analysis also suggests caution for investors as the Bitcoin futures open interest metric has reached all-time highs, even after the price dropped beneath the $100K mark. This increase in open interest may indicate that a short-term crash is imminent, driven by liquidation cascades.
Conclusion
To summarize, based on our analysis of Bitcoin’s daily and 4-hour charts, coupled with an evaluation of market sentiment via the open interest metric, we can confidently suggest that the possibility of Bitcoin crashing below $90,000 in the short term is plausible. In light of this, investors should exercise extreme caution when making any investment decisions regarding this asset.
Please note that the data and content provided are solely for informational purposes and do not constitute financial advice.
Source: cryptopotato.com
