Will the Bitcoin (BTC) price absorb the incoming supply for a bounce back or test the crucial $90K support level?
Bitcoin’s loss of the $94,000 support level has driven market-wide crypto liquidations to $242.21 million. However, unlike previous liquidation runs, the difference between long and short liquidations has significantly reduced.
Long-side liquidations total $128.98 million, while short-side liquidations account for $113.28 million. Amid such conditions, will the Doji formation on Bitcoin’s chart result in a rebound this week?
Bitcoin Price Analysis
In the daily chart, BTC’s price action showcases an intraday pullback of 1.06%. Currently, Bitcoin is trading at $93,990, creating its fourth consecutive red candle.
Furthermore, as predicted in our last price analysis article, BTC price managed to create a doji candle with a lower price rejection from the 50-day EMA. This has increased the chances of a Morning Star pattern.
However, the intraday pullback limits the chances. Nevertheless, with Bitcoin sustaining above the 50-day EMA line, the chances of a comeback are still significant. BTC has witnessed lower price rejections and bounce-backs from levels above $90,000 multiple times in the last month.
However, the slowdown in bullish momentum has dropped the RSI line to 42.38 as it inches closer to the oversold boundary line. Hence, the technical indicator maintains a bearish outlook.
Bitcoin Spot ETFs Lose $226M on Monday
Amid the loss of momentum, the institutional support for the largest crypto has failed to resurface, marking its third consecutive bearish day. The daily net outflow for U.S. spot Bitcoin ETFs remains at $226.56 million.
BlackRock remains the only purchaser of Bitcoin, with an inflow of $31.66 million. The bearish pack was led by Fidelity’s outflow of $145.97 million.
BTC Price Targets
Based on the price analysis, a continuation of the downtrend will continue to challenge the crucial dynamic support at $92,556. Meanwhile, the chances of a Morning Star pattern to challenge the 20-day EMA at $97,896 looms over.
On a side note, as Bitcoin remains at a crossroads, the downside risk continues to grow. Hence, a bullish failure to form a morning star will likely result in a retest of the $90k support level.