Bitcoin Approaches $91,000 and Bulls Remain Hungry

Market Analysis for Bitcoin

Bitcoin bulls are on track to reach $91,000, as early-year trading volumes highlight market expectations for a positive Q1.

The early-year rally for Bitcoin (BTC) has faced significant resistance around the $93,000 mark, prompting a correction that has shifted market focus back to key support levels. While the long-term structure (HTF) appears fragile, short-term signals (LTF) suggest that bulls may still have opportunities if critical levels are maintained.

Key takeaways:

• Bitcoin has been rejected from $93,000 for the third time, retreating close to weekly lows of $89,250.
• Rising open interest during the decline suggests that short positions are accumulating around the $90,000 level.
• Strong passive offers around $90,000 could act as a support point or, alternatively, could open the door to the $86,000 - $87,000 range.

Bitcoin bulls must defend $90,000.

After an 8% surge towards $93,000, Bitcoin generated a swing failure pattern (SFP) at the same resistance level for the third time. This rejection pushed BTC downward, rekindling the risk of consolidation or continued bearish movement in line with the long-term trend.

Though the LTF structure provides room for a bullish reaction, Bitcoin is currently testing a key order block between $89,200 and $90,500, the first area of interest where bulls might attempt new long entries if the momentum turns positive.

In the forthcoming period, Bitcoin may trade sideways until the weekly close. A decisive bullish recovery above $91,666 would mark the first confirmation of a bullish continuation, forming a higher low on the LTF trend.

By analyzing open interest and price, it becomes evident that when BTC dropped from $92,000 to $90,000, open interest surged sharply, indicating that short positions are accumulating.

It is estimated that if BTC can defend $90,000, a short squeeze becomes likely. A strong daily close above $91,700 would serve as the first signal, paving the way for another test of $93,000.

However, failure to maintain the $89,000 level would quickly expose internal liquidity between $86,000 and $87,000, providing sellers a clear downside target.

This article does not contain financial advice or recommendations. Any investment and trading movements involve risks, and readers should conduct their own research before making decisions.