Bitcoin Downtrend Deepens; Traders Target $98k–$100k Short-Liquidation Zone
Bitcoin (BTC) accelerated its downward trend, falling below the $90,000 support to a six-month low of $88,267. Key technical indicators such as the 50-week EMA at about $100,000 and the year-open price near $93,300 have broken, fueling debate on whether BTC is bottoming or entering a bear market. Analysts at Swissblock and Glassnode highlight the need for BTC to reclaim the $94,000–$99,000 range to shift momentum bullish, while Daan Crypto Trades points to $94,000 as a critical pivot. Market tracker CoinGlass shows over $2.1 billion in sell orders between $96,600 and $98,500. A break above $98,000 could trigger a short squeeze toward $100,000, but failure may cement bearish control. U.S. spot BTC ETFs saw a $75 million inflow, hinting at early stabilization. Traders should monitor these levels amid upcoming economic data.
Bearish
Bitcoin’s recent break below multiple key support levels, including the $90,000 mark, 50-week EMA near $100,000, and the $93,300 year-open price, underscores an accelerating bearish trend. Historical patterns show that such losses often precede deeper corrections unless a significant short squeeze occurs. Despite liquidity clusters around $98,000–$100,000 offering potential for a short-covering rally, the heavy sell orders exceeding $2.1 billion in the $96,600–$98,500 zone and failure to reclaim these pivot levels suggest bears retain control. The modest $75 million inflow into U.S. spot Bitcoin ETFs signals early stabilization, but absent a clear technical reversal, market sentiment remains skewed toward further downside. Short-term volatility could spike around upcoming economic data, but the long-term outlook stays bearish until critical resistance is decisively breached.