Key Insights:
- Bitcoin tests $95K resistance as traders watch $90K–$91K support zone.
- CME gap at $85K raises concerns of a possible price retracement.
- Market awaits confirmation of breakout or potential pullback in coming days.
Bitcoin’s price has risen sharply, exceeding $90,000, after President Donald Trump announced the creation of a U.S. Crypto Strategic Reserve. This reserve includes Bitcoin, Ethereum, XRP, Solana, and Cardano, signaling a significant shift in governmental approach toward digital assets.
Bitcoin Price Faces Resistance as Momentum Indicators Remain Weak
Bitcoin’s price recovery above $93,000 has yet to confirm a strong bullish reversal, as key momentum indicators remain mixed. The Relative Strength Index (RSI) currently stands at 49.23, rebounding from oversold conditions but still below the 50 threshold that typically signals bullish momentum. This suggests market uncertainty, with neither buyers nor sellers in firm control.
Other indicators, including the Awesome Oscillator (AO), continue to show weak momentum, indicating that the recent bounce lacks strong buying conviction. Meanwhile, the Cumulative Volume Delta (CVD) highlights increased buying activity, but selling pressure remains dominant, limiting Bitcoin’s upside potential.
Bitcoin now faces a critical test at the $95,000 resistance level. A rejection at this zone could trigger another pullback toward the $90,000–$88,000 range, with liquidation events potentially accelerating the decline. However, if Bitcoin breaks above $95,000, analysts anticipate a rally toward $100,000, provided RSI moves above 50 and buying volume sustains upward pressure.
Traders Eye Key Support Levels as Bitcoin Tests Resistance
Bitcoin is now testing crucial resistance near $95,000 after reclaiming its previous trading range. However, traders remain cautious, identifying potential support levels in case of a downside move.
Daan Crypto Trades, a well-known trader, highlighted the $90,000–$91,000 range as an important level for bulls to defend. “We saw a violent breakdown and retake back into the range. Price is currently testing it, and this would be a region where bulls would want to step in,” he noted on X, adding that daily closes will be critical for assessing Bitcoin’s next move.
BTC/USD previously consolidated in this range for three months before breaking down to $78,000, filling a gap in the CME Bitcoin futures market.
CME Gap and Liquidity Concerns Raise Uncertainty
While the market has rebounded, some analysts remain cautious about another potential decline. Trader Mark Cullen pointed out the formation of a new CME futures gap due to the rapid daily candle surge, raising concerns about a short-term price drop.
He also questioned whether Bitcoin might revisit the $85,000 level to “clean up” the gap created by the recent price surge, describing such a move as a potential shakeout.
With Bitcoin price hovering near $93,000, traders watch key liquidity zones for the next move.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.