After breaking below the $100,000 level for the second time this month, the bears look to have taken full control of the Bitcoin price. The last week has been categorized by slow market movement, with Bitcoin chopping more sideways and then moving further down with each decision. At this point, it seems that there is a major hunt for liquidity in the market that could trigger further decline, something highlighted by crypto analyst TehThomas in a recent post.
Bitcoin Price Needs To Reclaim $97,000
Thomas’ analysis focuses on the recent Bitcoin price breakouts that have ultimately ended with the cryptocurrency giving the gains back to the market in a dramatic way. This comes after the Bitcoin price completed its foray into new all-time high levels, clearing $126,000 in the process. However, since then, it has been a tale of a slow decline.
Most of this decline has been a result of direct selling, especially with billion-dollar whales dumping their considerable BTC holdings on the market. This push-down has driven the Bitcoin price down to a critical level, and its capacity for recovery now depends on whether it’s able to reclaim the $97,000 level.
The reason for this, as the crypto analyst explains, is that it would mean that the buyers are beginning to return to the market. Thus, if the Bitcoin price reclaims the $97,000 level with momentum, then it would see a short-term bounce to put it back above $100,000.
The Bears Still Have Their Positions
For the bearish scenario, the crypto analyst explains that the bitcoin price would need to fail to close above $95,000. As seen over the weekend, this support level has already been weakened after the Bitcoin price breakdown and could see more decline as a result.
If it fails to hold up, then the current downtrend should be expected to deepen. This is because the Bitcoin price would be falling to the next levels, where there is much deeper liquidity, and these levels happen to lie below $90,000. This support level would pull the price in until the buyers step in again.
“In that situation, the next major support zone below becomes the logical draw, and the path shown on the chart, a small bounce followed by another leg down, fits well with the current momentum,” the analyst explains. Given this, the buyers would have to step in this new week to ensure another push, or the Bitcoin price risks a further crash.
Featured image from Dall.E, chart from TradingView.com
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