Bitcoin On Crash Below $90,000 Soon? (Bitcoin Price Analysis)

Bitcoin price has been unable to continue its upward momentum, since falling below the $100,000 resistance level. This has created a lot of uncertainty about future price action.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the price has consolidated below $100,000, after briefly breaking higher a couple of weeks ago and making a new all-time high. A few days ago, the market failed to break the $100,000 level and was rejected to the downside.

As a result, the $90,000 support level is likely the short-term target. The reaction to this area will determine the short-term price action for BTC.

Source: TradingView The 4-hour chart

The 4-hour period demonstrates a clearer picture of sideways price action. The market was initially making higher highs and higher lows within an ascending channel.

However, it has since broken the bearish pattern and retested it twice. With the RSI also showing values ​​below 50%, indicating bearish momentum, the market is likely to drop towards the $90,000 level before a possible bullish continuation.

Source: TradingView Sentiment Analysis

By Edris Derakhshi (TradingRage)

Open interest

Bitcoin futures market sentiment has been providing valuable insight over the past few years, helping analysts predict potential near-term volatility. This chart presents the open interest metric, which measures the total number of open perpetual futures contracts on derivatives exchanges.

As the chart shows, open interest values ​​have been at all-time highs, even as the market has broken below the $100,000 level and stopped trending. This may indicate potential short-term volatility, caused by liquidation cascades. As a result, investors should be careful when investing in Bitcoin at this time.

Source: CryptoQuant SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato Readers on Bybit – Use this link to register and open a FREE $500 position with any currency!

Disclaimer: The information found on CryptoPotato is that of the quoted writers. It does not represent CryptoPotato’s views on whether to buy, sell or hold any investment. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for details.

TradingView Cryptocurrency Charts.