Bitcoin is currently at a critical juncture, with analysts warning of a potential bearish pattern on the daily timeframe. The increasing number of Bitcoin liquidation levels is causing concern, raising the possibility of downward pressure on the cryptocurrency in the near future. A major factor impacting Bitcoin’s price is BlackRock’s recent decision to sell off a significant amount of Bitcoin, resulting in a $184 million outflow from its Bitcoin ETFs on Friday.
In terms of price levels, Bitcoin is encountering multiple obstacles. Analyst Josh from Crypto World noted that the cryptocurrency is facing resistance at a key Fibonacci extension level of around $102,000 on the weekly chart. This level has proven to be a significant barrier for Bitcoin, indicating a crucial point where the price could either rebound or face further downward pressure.
Despite the resistance, Bitcoin remains in a larger bullish trend, as evidenced by the SuperTrend indicator remaining in the green. However, a bearish divergence is emerging on the weekly chart, suggesting that the bullish momentum may be waning. This divergence implies that Bitcoin could undergo a cooling-off period, potentially leading to short-term price pullbacks or sideways movement.
In terms of short-term targets, the price range to watch is between $96,300 and $100,518, which could serve as a resistance zone for a potential corrective rally. Breaking above $100,518 may indicate a shift towards higher targets. On the other hand, there is a possibility that Bitcoin could reach a Fibonacci extension level of $87,748, acting as a potential low for the correction, although this outcome is less probable. Traders should closely monitor the support and resistance levels discussed above to gauge Bitcoin’s future direction.
Overall, Bitcoin is approaching a critical phase, with various factors influencing its price movements. Whether it maintains its bullish momentum or undergoes a short-term correction, vigilance and strategic decision-making are essential for traders navigating the volatile cryptocurrency market.