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The price of Bitcoin remains in bearish volatility, briefly revisiting the $95K support level today. Will this lead to a decline to $92K?
Amid the recent Bitcoin pullback, the crypto market experienced a massive liquidation surge, totaling $230.30 million. Long-position traders lost $180.89 million.
Will the BTC price remain trapped in a bearish spiral after facing rejection at $100K, or is a bullish reversal possible?
Bitcoin Price Analysis
With BTC’s price crashing below the $96,500 support level, the market cap has dropped to $1.9 trillion. After a 1.7% decline in the past 24 hours, the 30-day returns have fallen to 3.46%.
Notably, Bitcoin established a 24-hour low at $95,083 amid the crash. However, a 0.7% intraday recovery has lifted the current price to $96,339.
Short-term volatility has resulted in a consolidation range on the 1-hour chart, followed by a pullback. Interestingly, with a double-bottom reversal pattern within this range, the BTC price is aiming for a potential breakout.
The upper ceiling of this consolidation range is just above the 23.60% Fibonacci level at $96,279. Adding to the optimism, a morning star pattern has formed, setting the stage for a possible rebound to the 38.20% Fibonacci level at $98,571.
Increasing the chances of a bullish recovery, the MACD and signal lines have crossed positively. However, broader market conditions remain cautious, indicating a potentially slower weekend. Traders should keep this in mind.
Where’s BTC Price Headed?
As per the current situation, the price of Bitcoin is trapped in a consolidation move. After the quick pullback, this hints at a potential bearish continuation. Hence, price exchange traders could find selling opportunities if the BTC price closes under the bottom support level at $95,300.
If this happens, Bitcoin’s price could retest the $92,573 support level. Essentially, traders should prepare for heightened volatility in this scenario.