Technicals point to a slowdown, with potential returns below $88K.
The latest analysis on Bitcoin suggests that the cryptocurrency is approaching a critical point, which could confirm bearishness on the daily timeframe. As more of Bitcoin's liquidity levels stack up, there is a greater risk that Bitcoin may experience downward pressure in the short term. One of the factors currently affecting the price of Bitcoin is BlackRock's recent decision to sell a large amount of Bitcoin. The firm saw $184 million in withdrawals from its Bitcoin ETF 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 marks a critical point where the price can either bounce back or be exposed to further downward pressure.
Despite this resistance, as indicated by the SuperTrend indicator remaining in green, Bitcoin still has a large bullish trend. However, there is a bearish divergence on the weekly chart that suggests the momentum may be slowing. This difference suggests that Bitcoin may experience a cooling, which may lead to short-term price reversals or sideways movements.
Important short-term goals
A key price range to watch is between $96,300 and $100,518, which could act as a buffer zone for a correction rally. If Bitcoin manages to break above $100,518, it could mean a move to higher targets. Alternatively, there is a possibility that Bitcoin could hit the Fibonacci extension level at $87,748, which could serve as a potential low for a correction, although this is very unlikely. Whether Bitcoin continues its bull run or faces a short-term correction, traders should pay attention to the support and resistance levels described above.
