Bitcoin is currently testing critical support at $96,000, with price action showing consolidation above $95,000 after failing to maintain levels above $98,000
Multiple liquidity clusters have formed between $94,400-$95,500, which could act as strong support zones if tested
Technical indicators suggest bearish momentum in the short term, with the MACD gaining pace in the bearish zone and RSI below 50
Previous week’s low of $96,028 has repeatedly acted as a strong support level, with rebounds occurring at this threshold
Traders are maintaining a small profit margin of 0.21%, while the Taker Buy Sell Ratio shows an increase in buying activity
Bitcoin continued its gradual decline from recent highs, currently testing crucial support levels around $96,000. The leading cryptocurrency has shown mixed signals in recent trading sessions, as market participants closely monitor key technical levels that could determine the next major price movement.
The price action has established a series of lower highs since failing to maintain momentum above the $100,500 mark. Bitcoin’s descent below several technical indicators has caught the attention of traders and analysts, who are watching for potential support levels that could prevent further downside.
Recent market data indicates that Bitcoin is trading below both the $98,000 price point and the 100-hour Simple Moving Average, suggesting increased selling pressure in the short term. A bearish trend line has formed with resistance at $98,200, creating an additional technical hurdle for any potential upward movement.
The cryptocurrency has tested the 61.8% Fibonacci retracement level, measured from the $91,000 swing low to the $102,500 high. This technical indicator often serves as a crucial reference point for traders determining potential support and resistance zones.
Multiple liquidity clusters have formed between $94,400 and $95,500, potentially providing strong support if tested. These clusters represent areas of high trading activity and could act as a buffer against further price declines.
The previous week’s low of $96,028 has repeatedly demonstrated its importance as a support zone, with multiple rebounds occurring at this threshold. This level has become a focal point for traders, with substantial buy orders accumulating in this region.
Technical indicators present a cautiously bearish outlook in the immediate term. The MACD (Moving Average Convergence Divergence) shows increasing momentum in the bearish zone, while the Relative Strength Index (RSI) remains below the 50 level.
Market data reveals that traders are maintaining a slight profit margin of 0.21%, indicating a level of cautious optimism rather than overwhelming bullish sentiment. This modest profit margin aligns with historical patterns where substantial buying opportunities typically emerge during periods of more considerable losses.
The Taker Buy Sell Ratio from BitMEX has shown an uptick in buying activity, presenting a contrasting signal to the otherwise cautious market sentiment. This increased buying pressure could potentially support prices if the trend continues.
Immediate resistance levels have established themselves at $96,750, with additional resistance near the $98,000 mark. A successful break above these levels could open the path toward the psychologically important $100,000 level.
On the downside, support levels are currently positioned at $96,000, with additional support at $95,500. If these levels fail to hold, the next support zone appears at $93,700, followed by $92,000.
The cryptocurrency’s proximity to these liquidity clusters presents both opportunities and risks. A descent to sweep the longs in these pools could trigger increased selling pressure, potentially pushing prices toward the lower end of the range.
Trading activity has centered around key weekly levels, with the previous week’s open at $102,560 and high at $106,450 serving as potential resistance zones for any upward movements.
Recent price action suggests that Bitcoin needs to maintain its position above the $96,000 support level to prevent further decline. A break below this threshold could trigger additional selling pressure as stop losses are activated.
The most recent data shows Bitcoin trading just above the $95,000 support zone, with market participants closely monitoring the $96,000 level for signs of either continuation or reversal.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
