Short-Term Bearish Signals in Bitcoin
Bitcoin is currently navigating a short-term bearish trend, as anticipated by market analysts. The cryptocurrency is forming a new price pattern, with significant movements observed among Bitcoin whales who are closing sizable long positions. Presently, Bitcoin is trading just above the $96,500 mark, having slipped into a bearish zone.
Bitcoin Whale Activity
The activity of Bitcoin whales is noteworthy, as they are closing long positions. In the past 24 hours alone, approximately 6,000 Bitcoins worth of long positions, valued at over $500 million, have been liquidated. This behavior could signal profit-taking strategies or a cautious stance in anticipation of a short-term price pullback.
According to Josh, an analyst from Crypto World, while the market remains in a broader bull phase, there is a noticeable decline in short-term momentum. Such patterns are not uncommon in bull markets; for instance, during October and November of last year, Bitcoin demonstrated strong bullish activity followed by phases of lateral movement.
Fading Bullish Momentum
Currently, the weekly Moving Average Convergence Divergence (MACD) indicator for Bitcoin suggests a waning momentum, hinting at the possibility of extended sideways consolidation in the upcoming weeks. This phenomenon is typical during extensive bull markets, where temporary slowdowns in momentum precede further upward movements.
Key Resistance at $100,000
Bitcoin is encountering significant resistance near the $100,000 threshold. This barrier is influenced by psychological factors as well as the 161.8% Fibonacci extension level at $102,000. The confluence of these factors contributes to the price struggle observed in this range.
Critical Support Levels
Should Bitcoin experience a pullback, crucial support is identified around the $89,000 mark. On the three-day chart, this level serves as primary support, with a more substantial support level existing at $87,000, which could be tested in the event of a deeper price correction.
Potential Price Targets Beyond $100,000
In the scenario where Bitcoin successfully breaches the $100,000 resistance, the subsequent price target is projected around $113,000, as indicated by the 261.8% Fibonacci extension. Analysts predict that the Bitcoin market may undergo choppy, sideways movement over the next one to two weeks before a potential breakout above the $100,000 mark.
