BTC Could Challenge $100K Again If This Support Holds

Bitcoin’s price has been gradually declining over the past several days before finding some support at $94K. While the market has once again found support in a key area, the level could be broken to the downside soon.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

On the daily chart, the asset was recently pushed above the $100K level but failed to maintain momentum and fell down. Yet, the $92K level has once again held the cryptocurrency, preventing a deeper decline.

Yet, as the level has been tested multiple times already, it is very likely that the price will break to the downside in case of another test. On the other hand, if the level holds, the market will once again try to break above the $100K level and pave its way toward a new all-time high.

The 4-Hour Chart

Looking at the 4-hour chart, the recent price action becomes much more clear to interpret. With a failed bullish breakout above $100K a few days ago, the market has experienced a quick downturn. However, the $92K level has halted the decline.

Yet, the momentum is still bearish, as the market is not showing any significant willingness to rise back toward the $100K area. Therefore, if things remain the same, a breakdown of the $92K level and a drop toward the $85K mark will be probable.

On-Chain Analysis

By Edris Derakhshi (TradingRage)

Exchange Reserve

While Bitcoin’s price has been consolidating below the $100K level over the past couple of months, market participants are becoming worried about the overall direction. This is quite clear when analyzing the futures market sentiment.

This chart presents the funding rates metric, one of the best measures for evaluating the futures market sentiment. Positive values indicate bullish sentiment, and negative numbers are associated with a bearish sentiment.

As the chart suggests, while the funding rates remain positive, they have significantly declined compared to December and even March last year when the market first touched the $70K mark. While this shows uncertainty by market participants, it also indicates that the futures market is not overheated, and sufficient spot market demand can push the price higher and initiate a sustainable rally.