Bitcoin Tests $93,000 as Markets Digest Venezuela Tensions: Technical Analysis Points to Potential $100K Retest
Bitcoin is holding up well despite political uncertainties. It is currently trading above $93,000, which is a 2.2% increase over the past 24
Quick overview
- Bitcoin is currently trading above $93,000, reflecting a 2.2% increase in the last 24 hours amidst political uncertainties.
- Technical analysis indicates that Bitcoin's critical resistance level is at $92,000, while a breakout above $95,000 could lead to a rapid rise towards $100,000.
- Recent liquidation data shows a significant closure of short positions, suggesting that bearish traders were caught off guard by the market's upward movement.
- The current market structure supports bullish sentiment, but a sustained breakout requires Bitcoin to maintain momentum above $95,000.
Bitcoin BTC/USD is holding up well despite political uncertainties. It is currently trading above $93,000, which is a 2.2% increase over the past 24 hours. The top cryptocurrency has stayed close to its year-to-date highs as markets deal with the effects of US military operations on Venezuela. Traders are keeping a careful eye on important technical levels that could signal the next big price move.
Bitcoin’s Critical Liquidity Zones Define Near-Term Trading Range
As the weekly close nears, technical analysis shows that Bitcoin is at a very important point. Daan Crypto Trades, a well-known trader, looked at data from CoinGlass and found that the biggest liquidity cluster is just below the yearly open at about $88,000. Above current prices, $92,000 is the most important resistance level to watch. For a long time, this $92,000 mark has been the highest point in the range. It is now a key level for bullish continuation.
Market structure analysis shows that BTC/USD has broken out of a symmetrical triangle formation on two-hour timeframes. Trader Alan Tardigrade says that the breakout will only stay legitimate if the price goes beyond $90,000. This key milestone has been reached now that Bitcoin is trading above $93,000. This could open the door for more gains.
Commentator Exitpump has pointed out that order books show “thin air” above $95,000, which means that there isn’t much resistance there. This could allow for a quick retest of the psychologically important $100,000 barrier. There is often a shortage of supply overhead before prices rise quickly in either direction.
BTC/USD Technical Analysis: RSI Signals Potential Reversal
Bitcoin’s weekly relative strength index (RSI) is at its lowest point since the end of the bear market in 2022 from a momentum point of view. In the past, these kinds of oversold positions on lengthier timeframes have come before big price rebounds. Michaël van de Poppe, a crypto analyst, said that Bitcoin is “starting an uptrend” against gold, but he said that a greater high would need to be reached to confirm the bullish divergence.
Van de Poppe’s point is especially important because gold has been poor lately as the year comes to a close, while crypto markets have bounced back. Venezuela has the most gold deposits in Latin America, thus the present geopolitical crisis adds another factor to the Bitcoin-gold relationship that traders are keeping a close eye on.
Liquidation Data Reveals Market Sentiment
Recent data on liquidations gives us an idea of how people feel and where they are. Over the course of 24 hours, almost $60 million worth of Bitcoin positions were closed, with about $55 million coming from short positions. This forced covering of bearish bets can make prices go up even more, and it shows that bears were on the wrong side of the market’s reaction to events over the weekend.
The way the weekly candles have been closing lately has caused “fakeouts” in both directions, closing positions on both sides without breaking out of the range that has already been set. But now that BTC is clearly above $93,000, the chances of a real breakthrough are getting better.
Bitcoin Price Prediction: Path to $100,000 Opens Above $95,000
Bitcoin’s immediate path rests on whether it can break through $95,000, given its current technical structure. If the price breaks over this level, it will probably quickly advance toward $100,000, since there aren’t many orders in that area. The most important support level is still $92,000. There is also deeper support at $90,000 and the yearly open at $88,000.
As traditional financial markets open, traders should stay alert because stocks, commodities, and bonds may all affect each other’s prices, which could cause volatility. The macroeconomic situation, such as the US national debt exceeding $38 trillion, continues to support Bitcoin’s story as a fixed-supply alternative to fiat currencies. This theme is especially prominent on Genesis Day, which is the anniversary of Bitcoin’s first block.
Above $93,000, the technical setup supports bulls, but to establish a sustained breakout, the price must break through $95,000 with volume. Until then, the most likely thing to happen is range-bound trading with occasional surges in volatility.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save