The latest analysis on Bitcoin suggests that the cryptocurrency is approaching a critical point, potentially confirming a downtrend on the daily time frame. As Bitcoin liquidation levels accumulate, there is an imminent risk that Bitcoin will face downward pressure in the near term. One of the factors currently influencing the price of Bitcoin is BlackRock’s recent decision to sell a large amount of Bitcoin. The company saw an outflow of $184 million from its Bitcoin ETFs on Friday.
Bitcoin Price Levels: Testing Support and Resistance
When it comes to Bitcoin price levels, the cryptocurrency is currently facing several challenges. On the weekly chart, analyst Josh of Crypto World said that price is encountering resistance at a key Fibonacci extension level around $102,000. This level has become a major hurdle for Bitcoin, as it indicates an important point where the price could either rebound or face further downward pressure.
Despite this resistance, Bitcoin is still in a broader uptrend, as indicated by the SuperTrend indicator, which remains in the green. However, a bearish divergence is forming on the weekly chart, signaling that the bullish momentum may be slowing. This divergence suggests that Bitcoin could be experiencing a cooling period, which could lead to a short-term price decline or sideways movement.
Important short-term goals
A key price range to watch is between $96,300 and $100,518, which could serve as a resistance zone for a potential corrective rally. If Bitcoin can surpass $100,518, it could signify a shift towards higher targets. Alternatively, there is a scenario in which Bitcoin could reach a Fibonacci extension level of $87,748, which could serve as a potential low for the correction, although this remains less likely. Whether Bitcoin continues its uptrend or faces a short-term correction, traders should pay close attention to the support and resistance levels discussed above.
