Can Bitcoin Price Rise Above $99k Today? Indicators Turn Green Despite Pullback Below $96k
Bitcoin is currently down more than 1%, trading at just over $98,000. After hitting a high of $98,655, the cryptocurrency reversed course and even fell below the $96,000 mark.
However, crypto world analyst Josh said that Bitcoin’s weekly chart shows strong momentum, with MACD showing a bullish trend. The Supertrend indicator on the 4-day chart is also green, indicating continued bullishness. While short-term corrections are normal, the long-term outlook remains positive.
Short-Term Price Action: Pullbacks and Support Levels
Despite the bullish outlook, Bitcoin is still experiencing a short-term pullback. Bitcoin’s price is showing signs of losing momentum, especially around the key $100,000 level, which serves as psychological resistance. Retracement levels are expected around $94,000 to $95,000, with further support at $89,000 if the price declines.
Bearish Divergence: Historical Parallels
Bitcoin is experiencing a short-term bearish divergence, similar to the price action seen before the major breakout above $20,000 in 2020. As the price struggles below this psychological level, there could be a temporary pullback below $100,000 before an eventual breakout. The current situation shows a similar pattern, with higher prices and lower RSI, suggesting a loss of short-term momentum.
Bitcoin’s Pullback: Historical Context
It’s worth noting that even in bull markets, Bitcoin’s pullbacks are usually tolerable. The current pullback of 3-4% from recent highs is smaller than past corrections, such as the 16-17% pullback in 2020.
Liquidity and Short Selling Potential
Currently, liquidity is moving past the $100,000 level, and if Bitcoin breaks above that level, it could trigger a short squeeze. This will force many short positions to be liquidated, pushing prices higher. Downside liquidity is more limited, but there is still support around $94,000, with further support around $91,000.
