Bitcoin’s recent performance has investors questioning its next move as the price hovers near $94,000. After losing the $94K support level, the crypto market has faced liquidations of over $242 million, with Bitcoin leading the charge.
However, with a Doji candle signaling potential indecision in the market, traders are closely watching for a rebound or further decline.
Current Price Overview
Bitcoin is currently trading at $93,990, showing a slight intraday pullback of 1.06%. This marks the fourth consecutive red candle on the daily chart.
Despite bearish pressure, Bitcoin has sustained above its 50-day EMA, hinting at the possibility of a Morning Star pattern—a bullish reversal signal.
| Metric | Value |
|---|---|
| Current Price | $93,990 |
| 50-Day EMA Support | $92,556 |
| RSI Value | 42.38 (near oversold) |
| ETF Outflows (Net) | $226.56 million |
Liquidation Insights
The recent dip has triggered significant liquidations, totaling $242.21 million market-wide. Interestingly, the gap between long-side liquidations ($128.98 million) and short-side liquidations ($113.28 million) has narrowed, reflecting a balanced sentiment among traders.
This reduced disparity suggests a cautious market, with neither bulls nor bears fully dominating.
ETF Flows and Institutional Trends
Bitcoin spot ETFs in the U.S. have recorded a net outflow of $226.56 million, indicating waning institutional interest. The bearish sentiment was led by Fidelity, which saw an outflow of $145.97 million, while BlackRock was the lone significant buyer, adding $31.66 million.
This trend underscores the broader uncertainty, with institutions remaining hesitant amid Bitcoin’s current downtrend.
Technical Analysis and Price Targets
- Doji Candle Formation
The formation of a Doji candle on the daily chart signals market indecision. Combined with lower price rejection near the 50-day EMA, this increases the chances of a Morning Star pattern, which could drive a short-term rally. - Support and Resistance Levels
- Immediate Support: The critical dynamic support lies at $92,556. A breach below this level could expose Bitcoin to a retest of the $90K psychological mark.
- Upside Target: If bullish momentum builds, Bitcoin could aim to reclaim the 20-day EMA at $97,896, a significant resistance level.
- RSI and Momentum
The RSI has dropped to 42.38, nearing the oversold zone. While this indicates weakening bullish momentum, it also sets the stage for a potential rebound if buyers step in.
Risks and Challenges
The bearish factors—slowing momentum, sustained ETF outflows, and declining institutional support—pose challenges for Bitcoin’s recovery.
If bulls fail to capitalize on the Doji pattern and maintain support above $92,556, the $90K support level will likely face a critical test.
The Road Ahead
Bitcoin remains at a crossroads. A successful Morning Star pattern could see the price challenge the $97,896 resistance, setting the stage for a bullish recovery.
Conversely, failure to hold above the 50-day EMA might trigger a deeper correction, bringing the $90K level into play. Traders should closely monitor support at $92,556 and resistance near $97K to gauge Bitcoin’s next move.
