Bitcoin Battles $90K Support as Bulls Face Critical Test Amid Rising Short Interest
Bitcoin is trading above $90,000, and the volatility has been rather low over the past 24 hours. However, the leading cryptocurrency is at
Quick overview
- Bitcoin is currently trading above $90,000 with low volatility, but technical indicators are conflicting after a recent failed breakout.
- The cryptocurrency is testing a key support zone between $89,200 and $90,500, which could be crucial for bulls to defend.
- Open interest has surged as short sellers establish positions, indicating potential volatility and a chance for a short squeeze if support holds.
- Analysts present two scenarios: a bullish case if Bitcoin stays above $90,000, or a bearish case if it falls below $89,000, with some predicting a drop to $76,000.
Bitcoin BTC/USD is trading above $90,000, and the volatility has been rather low over the past 24 hours. However, the leading cryptocurrency is at a key point since technical indicators are sending contradictory signals after a failed breakout effort earlier this week.
Multiple Rejections Raise Questions About Rally Sustainability
In early January, Bitcoin jumped 8% to $93,000, but it hit a major resistance level for the third time and printed what analysts call a swing failure pattern (SFP). The next decline brought prices down to weekly lows at $89,250, which made them wonder if the early 2026 rebound has enough energy to keep going.
The cryptocurrency is currently testing a key order block between $89,200 and $90,500, which is the first big support zone where bulls could defend themselves. Bitcoin is still above its monthly rolling volume-weighted average price (VWAP), which turned positive at the start of 2026. This gives the bulls some technical support for their case.
Short Interest Builds as BTC Open Interest Surges
The most interesting thing that has happened in the last several trading sessions is that open interest has gone up sharply when Bitcoin fell from $92,000 to $90,000. This rise shows that short sellers are aggressively establishing positions near present levels. If bulls can defend the $90,000 support zone, there is a chance of a short squeeze.
CoinGlass data shows that there is a lot of passive bid liquidity around $90,000, and that there have been similar patterns of bid absorption over the past two weeks before short-term recovery. This means that both institutional and retail buyers think that the current levels are good places to buy.
But Byzantine General, a futures trader, warned that “liquidations data suggests that there’s a good amount of vulnerable longs in there,” which means that the market might be volatile in both ways.
Bitcoin Price Prediction: Two Divergent Scenarios Emerge
- Bullish Case: If Bitcoin can stay above $90,000 and print a clear bullish engulfing candle over $91,666, it would confirm a higher low on lower timeframes and maybe even start a short squeeze. If the price closes strongly above $91,700 every day, it could challenge the $93,000 resistance level again. If the volume stays high, it could drive BTC toward the $95,000 barrier, which has been hard to reach thus far in 2026.
- Bearish Case: If support can’t stay above $89,000, it will show internal liquidity between $86,000 and $87,000, which several analysts have said are likely targets. Trader Roman still thinks that Bitcoin will go back to $76,000, which it last saw in April 2025. He says that “all this sideways movement is just a reset to get there.”
Keith Alan of Material Indicators agrees with the pessimistic view, saying that a “macro Death Cross developing on the Weekly chart later this month” means that any short-term price increases should be seen as “sell the rip” chances until obvious reversal signals show up.
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