Current Bitcoin Trading Status
Bitcoin is currently trading just above the $93,000 mark, experiencing a decline of over one percent within the past 24 hours. This decrease has nearly wiped out the gains accumulated over the previous week, and the cryptocurrency struggles to regain momentum above the $95,000 threshold. Despite this short-term challenge, Bitcoin displays promising signs of potential bullish divergence on smaller time frames. These indications suggest that upward momentum could resume in the near future. Additionally, liquidity is accumulating both above and below the current price point, hinting at possible price movements in either direction.
The Impact of Bitcoin ETF Outflows on Price
Recent market activities reveal that Bitcoin has experienced net outflows from spot Bitcoin ETFs, which has contributed to increased selling pressure. While BlackRock continues to witness inflows, the majority of other ETFs have reported outflows totaling approximately $435 million. Continued outflows could exacerbate price declines, necessitating close monitoring of their impact on Bitcoin’s valuation.
Balancing a Long-Term Bullish Outlook with Short-Term Challenges
Analyst Josh from Crypto World maintains a bullish long-term outlook for Bitcoin, supported by indicators such as a MACD crossover signaling upward movement. However, the cryptocurrency faces significant resistance between $100,000 and $102,000, according to Fibonacci extension levels. Should Bitcoin fail to surpass this range soon, it might enter a phase of consolidation or experience a pullback.
Key Support and Resistance Levels for Bitcoin
Recently, Bitcoin closed below the $94,000 mark, which could now act as a resistance level. Should Bitcoin struggle to reclaim this level, further downside risks emerge. Support is anticipated around $88,000, with major support identified between $90,000 and $92,000, based on traded volume data. A breach below $87,000 could result in a rapid descent towards $77,000.
Short-Term Divergence and Liquidity Considerations
There is a confirmed bullish divergence, indicating a potential for slight recovery or sideways movement in the upcoming days. Short-term support levels play a crucial role, as Bitcoin demonstrates liquidity accumulation around $91,000, with additional liquidity at $100,000. This setup hints at the potential for a short squeeze if Bitcoin manages to break above this price level.
