Bitcoin price failed to continue its upward momentum after falling below the $100K resistance level. This has led to great uncertainty regarding future price movements.
Technical analysis
Edris Derakhshi (TradingRage)
Daily chart
On the daily chart, the price is consolidating below $100,000 after briefly breaking higher a couple of weeks ago and setting a new all-time high. A few days ago the market was unable to overcome the level of 100 thousand dollars and was rejected downwards.
As a result, the $90k support level is likely to become a target in the short term. The reaction to this area will determine the short-term price action of BTC.
4 hour chart
The 4-hour time frame shows a clearer picture of sideways price movement. Initially the market made higher highs and higher lows inside the rising channel.
However, he has since broken the model and tested it twice. With the RSI also showing values below 50%, indicating bearish momentum, the market is likely to fall to the $90,000 level before a potential bullish continuation.
Sentiment Analysis
Edris Derakhshi (TradingRage)
Open Interest
Sentiment in the Bitcoin futures market over the past few years has provided valuable information, helping analysts forecast potential near-term volatility. This chart presents Open Interest, which measures the total number of open perpetual futures contracts on derivatives exchanges.
As the chart shows, open interest values are at an all-time high, even though the market has fallen below the $100K level and stopped moving. This could indicate potential near-term volatility caused by liquidation cascades. As a result, investors should be cautious when investing in Bitcoin at this time.
