- Bitcoin swept into the short liquidity cluster at $88K, and the next liquidity cluster sat at $83K.
- The bid ask ratio across both depths was in the negative region, while TRA long% on Binance was at 39.1%.
Bitcoin [BTC] surged to around $89K but faced a rejection suggesting potential bearish continuation as a couple of metrics denoted. The short-term move was yet to be confirmed.
Bitcoin’s bearish signals
BTC’s sweep at $88,000 created a dense area of liquidations within the short-term market.
The price movements of Bitcoin have historically had weekly highs on Mondays, and this week’s sweep was no exception.
Failure to maintain price rise above this liquidity area would trigger a potential market reversal towards $83,000. The area was the deepest level of liquidity, which made it attractive for Bitcoin to reach this price level.
Source: Hyblock Capital
However, several bearish market factors emerged during BTC’s rise past $88K, exceeding the psychological supply and demand levels between buyers and sellers.
Both the 2% and 5% depths the showed more sellers than buyers, thus indicating red candle zones.
Previous market conditions produced such price imbalances resulted in either sudden price corrections or price stabilizing periods.
The ongoing bearish imbalance may drive BTC prices below $88,000 and push them toward different support levels.
The price might overcome expectations during its upward trajectory if buyers take on the sell-side pressure in the way they did during the green-zone periods of early April.
Source: Hyblock Capital
This way, the resultant movement for BTC would depend on how traders responded to the day trading activity.
Additionally, the True Retail Accounts percentage of long-position holders on Binance reached its 90-day minimum of 39.1% which occurred only 0.245% of the time.
The low reading of TRA long% suggested a bottom, which might trigger a surge in retail buying positions. This would likely decrease the price to trap them as market makers would be exiting, leaving the late market entries.
The absence of follow-up bearish pressure would lead to price stabilization or a market increase.
Key levels on price charts
For its price action, Bitcoin reached $87,000 yet met intense resistance from the intersection of the 200-day moving average and 100-day moving average which created a resistant zone between $88,000 and $91,000.
The middle area of this essential consolidation zone existed at the same point where selling pressure intensified.
Bitcoin could begin an upward movement towards $98,000 to $100,000 if it managed to exceed the resistance point at $91,000.
Source: Trading View
Failure to defend $84,000 could trigger an extended market decline towards $76,000.
A potential upward reversal from the previous price decrease yet resistance failure could activate a downturn unless the uptrend received confirmation through increased volume.