Technicals Point to Cooldown, Pullbacks Below $88K Likely
The latest analysis for Bitcoin suggests that the cryptocurrency is approaching a tipping point, possibly confirming a bearish pattern on the daily time frame. As more Bitcoin liquidation levels continue to increase, there is a looming risk of Bitcoin facing downward pressure in the short term. One of the factors affecting the price of Bitcoin right now is BlackRock’s recent decision to sell off a large amount of Bitcoin. The company’s Bitcoin ETF saw $184 million in outflows on Friday.
Bitcoin Price Levels: Testing Support and Resistance
The cryptocurrency is currently facing some challenges when it comes to Bitcoin’s price levels. On the weekly chart, Crypto World analyst Josh said that the price encountered resistance at the key Fibonacci extension level around $102,000. This level has become a major hurdle for Bitcoin as it shows an important point at which the price could rebound or face further downward pressure.
Despite this resistance, Bitcoin remains in a larger bullish trend, as shown by the SuperTrend indicator, which remains in the green. However, a bearish divergence has formed on the weekly chart, indicating that the bullish momentum may be slowing down. This divergence suggests that Bitcoin may be going through a cooling off period, which could lead to a short-term price pullback or sideways movement.
Important short-term goals
The key price ranges to watch are $96,300 and $100,518 may serve as resistance areas for a potential corrective rebound. If Bitcoin can break above $100,518, it could signal a move to higher targets. Alternatively, there is a scenario where Bitcoin could hit the Fibonacci extension level of $87,748, which could serve as a potential low for a pullback, although this remains less likely. Whether Bitcoin continues its bullish run or faces a short-term pullback, traders should keep a close eye on the support and resistance levels mentioned above.
