Bitcoin’s price has failed to maintain upward momentum after dropping below $100K, leading to market uncertainty.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily chart, Bitcoin has been consolidating under $100K after momentarily surpassing it and achieving a new all-time high. Recently, however, the market was rejected at this level and retreated.
Consequently, the $90K support level appears to be a short-term target. The market’s reaction at this point will heavily influence the price trajectory for BTC.
The 4-Hour Chart
The 4-hour chart illustrates clearer sideways price action. Initially, prices were ascending within a channel, making higher highs and lows.
However, the pattern has now been broken to the downside, which retested twice. The RSI also indicates bearish momentum with values below 50%, suggesting a likely drop towards $90K before any potential bullish recovery.
Sentiment Analysis
By Edris Derakhshi (TradingRage)
Open Interest
The Bitcoin futures market sentiment provides critical insights into short-term volatility. The chart displays open interest metrics, depicting all-time highs in open perpetual futures contracts, even as the market falls below the $100K threshold and ceases trending.
This could signal imminent volatility due to potential liquidation cascades. Investors are advised to proceed with caution while investing in Bitcoin now.
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