BTC could challenge $100,000 again if this support holds

Bitcoin price has been gradually declining over the past few days before finding support at $94,000. Although the market has found support again in a key area, the level could be broken to the downside soon.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the asset recently pushed above the $100,000 level, but was unable to sustain the momentum and fell. However, the $92,000 level has once again held the cryptocurrency, preventing a deeper decline.

However, since the level has already been tested several times, it is very likely that the price will go down in case of another test. On the other hand, if the level holds, the market will again try to break above the $100,000 level and open the way to a new all-time high.

The 4 hour chart

Looking at the 4-hour chart, the recent price action becomes much clearer to interpret. With a failed bullish break above $100,000 a few days ago, the market has experienced a rapid decline. However, the $92,000 level has stopped the decline.

However, the momentum is still bearish as the market shows no significant willingness to move back up towards the $100,000 area. Hence, if things remain the same, a break of the $92,000 level and a drop towards the $85,000 mark will be likely.

Chain analysis

By Edris Derakhshi (TradingRage)

Exchange reserve

While the price of Bitcoin has been consolidating below the $100,000 level for the past two months, market participants are becoming concerned about the overall direction. This is quite clear when analyzing futures market sentiment.

This chart presents the funding rates metric, one of the best measures to gauge futures market sentiment. Positive values ​​indicate bullish sentiment, and negative numbers are associated with bearish sentiment.

As the chart suggests, while funding rates remain positive, they have declined significantly compared to December and even March of last year, when the market first touched the $70,000 mark . While this shows uncertainty on the part of market participants, it also indicates that the futures market is not overheated and that sufficient demand from the spot market can push the price higher and start a sustainable rally.

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