Key takeaway:
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Bitcoin charts forecast further downside, but traders remain hopeful that a short squeeze to $98,000 will reverse the bearish trend.
Bitcoin (BTC) has been trending down alongside the broader crypto market since Nov. 3, dropping to a six-month low of $88,267 on Thursday. With key economic data expected on Thursday and Friday, markets could see volatile price swings toward key BTC price levels over the next few days.
Bitcoin must reclaim $98,000 to “flip momentum” bullish
Bitcoin’s latest drawdown saw the BTC/USD pair lose key support levels, including the 50-week EMA around $100,000 and the yearly open at $93,300.
This has led to mixed sentiment among market participants about whether the bull market has ended or if Bitcoin is bottoming out.
Related: $90K Bitcoin price is a ‘close your eyes and bid’ opportunity: Analyst
Private wealth manager Swissblock spotted Bitcoin hovering around $90,000, saying that the price has reached “cycle-level exhaustion.”
An accompanying chart revealed that Bitcoin’s price momentum has dropped to levels where it bottomed in March and after the Oct. 10 market crash.
“This is where bottoms build,” Swissblock said, adding:
“Reclaiming $97K–$98.5K flips momentum constructive, failing to do so hands bears full control.”
Similar sentiments were shared by Glassnode analysts, who said that the area between $95,000 to $97,000, where the −1 STD short-term holder (STH) cost basis currently sits, is “acting as local resistance,” adding:
“Reclaiming it would be an early indication that the market is moving back toward a degree of equilibrium.”
Immediately above the spot price, Bitcoin needs to break the local high at $94,000 to “break the current downtrend,” according to Daan Crypto Trades.
This is a key demand zone, where more than 290,300 BTC were acquired, according to Glassnode’s Cost Basis Heatmap.
Will liquidations drive BTC to $100,000?
Several traders are looking for a liquidity grab near $98,000, and the latest data from marketing monitoring resource CoinGlass showed the price eating away at liquidity around $92,000. More than $2.1 billion in ask orders were sitting between $96,600 and $98,500.
If the $98,000 level is broken a short squeeze to $100,000 could occur. This is a “juicy area to target above the early November consolidation,” said Bitcoin trader AlphaBTC in an X post, referring to the area between $100,000 and $104,000.
AlphaBTC added:
“Let’s see if $BTC can make an attempt back up there before Thanksgiving.”
As Cointelegraph reported, US spot Bitcoin ETFs logged $75 million in inflows on Wednesday, following five days of outflows, which hints at early stabilization in BTC markets.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
