Bitcoin Price Analysis: Short-Term Setback Amidst Long-Term Bullish Outlook
Bitcoin is currently trading slightly above the $93k level, down by more than one percent in the last 24 hours. The largest cryptocurrency has erased most gains made in the last seven days and is struggling to rise back above $95k.
Despite this setback, Bitcoin shows signs of potential bullish divergence on smaller time frames, indicating upward momentum may resume soon. Liquidity is building above and below the current price, signaling possible movements in either direction.
Bitcoin ETF Outflows Impacting Price
Spot Bitcoin ETFs experienced net outflows on Monday, contributing to selling pressure. While BlackRock saw inflows, other ETFs had outflows totaling about $435 million. Continued outflows could lead to further price declines, requiring monitoring for their impact on Bitcoin’s price.
Long-Term Bullish Outlook, Short-Term Challenges
Analyst Josh of Crypto World notes the overall bullish trend with signals like a MACD crossover suggesting long-term upward movement. Bitcoin faces resistance between $100,000 and $102,000, as per Fibonacci extension levels. Failure to break above this range could lead to consolidation or a pullback.
Important Support and Resistance Levels
Bitcoin closed below $94,000, now acting as resistance. Failure to reclaim this level could result in further downside. Support is expected around $88,000, with major support between $90,000 and $92,000. A break below $87,000 could see a quick drop towards $77,000.
Short-Term Divergence and Liquidity
Bullish divergence indicates a potential recovery or sideways movement in the next few days. Short-term support levels are crucial, with liquidity building around $91,000 and more at $100,000. This hints at a possible short squeeze if Bitcoin breaks above this price level.