The latest analysis of Bitcoin suggests that the cryptocurrency is approaching a critical point, potentially confirming a bearish pattern on the daily time frame. As Bitcoin liquidation levels pile up, there is a looming risk that Bitcoin will face downside pressure in the near term. One factor affecting Bitcoin’s price right now is BlackRock’s decision to sell a large amount of Bitcoin recently. The company saw an outflow of $184 million from its Bitcoin ETFs on Friday.
Bitcoin Price Levels: Testing Support and Resistance
When it comes to Bitcoin price levels, the cryptocurrency is currently facing several challenges. On the weekly chart, Crypto World analyst Josh said the price is facing resistance at a key Fibonacci extension level around $102,000. This level has become a major hurdle for Bitcoin as it shows a key point where the price could either bounce back or experience further downward pressure.
Despite this resistance, Bitcoin is still in a larger bullish trend, as indicated by the SuperTrend indicator, which remains in the green. However, a bearish divergence is forming on the weekly chart, indicating that bullish momentum may be slowing. This divergence suggests that Bitcoin could experience a cooldown, which could lead to price declines or sideways moves in the short term.
Important short-term objectives
An important price range to look at is between $96,300 and $100,518, which could act as a resistance zone for a potential corrective rally. If Bitcoin can break above $100,518, it could signal a shift to higher targets. Alternatively, there is a scenario where Bitcoin could reach a Fibonacci extension level of $87,748, which could serve as a potential bottom for the correction, although this remains less likely. Whether Bitcoin continues its bullish run or faces a short-term correction, traders should pay close attention to the support and resistance levels discussed above.
Credit : coinpedia.org
