Bitcoin (BTC) has reclaimed the $94,000 level, marking a sharp V-shaped recovery from a recent low of $91,000. This short-term rebound reflects bearish exhaustion, leaving investors wondering whether BTC is poised to break above $95K and head toward the coveted $100,000 milestone.
Price Analysis
On the 4-hour chart, Bitcoin’s price demonstrates significant demand near the $90,742 support level. This demand triggered a reversal from the 24-hour low of $91,215, forming three consecutive bullish candles.
Notably, the reversal negated the effects of a 2.45% drop caused by a bearish engulfing candle the night before.
The 50 and 200 EMA lines are converging, hinting at a potential death cross if the recovery falters. However, a bullish divergence in the RSI line sparked the reversal, trapping bears below the $92,654 support level.
With a rising RSI, momentum appears to favor bulls, suggesting a potential bottom in the current correction.
Key BTC Levels
| Price Level | Significance |
|---|---|
| $90,742 | Key support level |
| $92,654 | Bear trap reversal zone |
| $95,119 | Resistance near 20 EMA |
| $96,216 | 200 EMA resistance |
Derivatives Market Trends
Bitcoin derivatives data paints an intriguing picture. Over the past 24 hours, the crypto market saw $367 million in liquidations, with bullish positions accounting for $254.53 million. However, in the past 4 hours, $13 million in liquidations primarily came from bearish positions, signaling a shift in sentiment.
- Open Interest: Holding steady at $61.02 billion, indicating stable market activity.
- Long-to-Short Ratio: Slight improvement to 0.9539, still favoring shorts.
- Funding Rate: Increased from 0.0010% to 0.0044%, suggesting growing demand for long positions.
These metrics indicate that traders are becoming more optimistic about Bitcoin’s recovery, aligning with the bullish price action.
BTC Price Target
Bitcoin is now approaching the $95,190 resistance level. A breakout here could target the 200 EMA at $96,216 as the next hurdle.
However, failure to sustain momentum near the 20 EMA ($95,119) might lead to a retest of the $90,742 support level.
With bullish momentum building and key levels being tested, Bitcoin’s short-term trajectory will hinge on its ability to break above the $95K mark. The ongoing recovery has renewed optimism, but resistance at the 200 EMA remains a significant challenge.
Whether BTC can sustain this rally or revisit lower support levels will depend on market sentiment and broader macroeconomic factors.
