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After the major rally witnessed earlier in the new year, Bitcoin and other leading cryptocurrencies have seen a broad shift in market sentiment, and their price action has begun to move on the negative path.
While leading cryptocurrencies, including Bitcoin, are now showing major signs of weakness, recent data provided by popular crypto analyst Ali Martinez shows Bitcoin trapped between two critical levels.
Bitcoin's price outlook
According to charts showcased by the analyst, Bitcoin has continued to consolidate within a tightening triangle formation as on-chain metrics begin to go weak.
As such, the chart shows that the Bitcoin price is compressing between two major levels, which include $93,000 and $88,000. Notably, these levels now define the market’s short-term outlook.
While Bitcoin has been hovering around $90,082 in the past hours, its next price move is currently uncertain as it is stuck in the middle of the $88,000 and $93,000 range.
Furthermore, the chart shows a steady series of higher lows pushing upward and forming a firm resistance near $93,000. While each attempt to clear this level has so far been rejected, it appears that selling pressure has continued to heighten.
However, the rising support trendline has also continued to hold, suggesting persistent buying interest from traders on every dip.
With these unusual price movements, traders should expect that if Bitcoin manages a clean breakout above $93,000, momentum could quickly accelerate and a major price breakout could follow.
Nonetheless, traders should also note that failure to hold the rising support near $88,000 would break the bullish pattern and possibly trigger a deeper pullback to previous lows.
Bitcoin sees $249 million in ETF outflows
While Bitcoin’s next price move remains in suspense, its recent ETF activity has further sparked concerns among investors, with BlackRock steadily showing major sell attempts.
During its last trading session, the asset logged a massive $249 million in ETF outflow, signaling reduced interest among institutional investors.
Although traders are still optimistic about the asset, such a negative ETF flow has no positive impact on the asset’s potential price move.