- Bitcoin is approaching $90K with $7 billion in short positions at risk.
- Liquidation of $7 billion in shorts could fuel a price surge in Bitcoin.
- Bitcoin’s price surge may trigger significant liquidations at the $90K level.
Bitcoin has surged, gaining at least 9% today and still trading at $83,294. However, it remains cautionary as signals are fraught with problems in multiple time frames. Despite the upward march, SuperTrend continues to show a “Sell” signal. Furthermore, a death cross has formed on the daily chart, providing more signs to be worried about. The asset faces resistance at a monthly open of $82,500, which remains a strong area.
According to technical conditions, the direction going forward will most likely depend on how Bitcoin behaves close to $84,000. The decreasing trendline from the all-time highs reaches this zone and is considered very strong. Extra resistance by the moving averages around present prices could further complicate the short-term picture.
Hefty Atmosphere Of The Resistance
With a 50-day moving average of around $85,800 and a 200-day near $87,000, there are enough areas to push the price down.Coincidentally, as the price of Bitcoin is advancing toward these levels, it might wonder whether it is a prolongation of the breakout. Structural resistance is still the top dog on the daily chart.
For example, the descending trendline from the previous highs also acts as an anchor. This aforementioned $84,000 level marks a zone where previous trials have met with resistance. Failing to clear it would demonstrate the loss of bullish momentum, at least in the short run.
SuperTrend Cuts Sign
The rally notwithstanding, SuperTrend still displays a sell signal for Bitcoin. Wide resistance bands are mapped further above.Thus, short-term optimism remains restricted by the lingering messages of the SuperTrend and other chart patterns. To confirm the reversal trend, further confirmation on the upside may be needed above $87,000.
This may increase great resistance for traders, with a death cross insight moving ahead, wherein the 50-day MA sinks below the 200-day. Generally, this means bearish and bearish trend extension with confirmatory readings from other indicators. Such crossovers still cannot be trusted for how reliable they will become because volatility at times dilutes good signals.
Could Bitcoin Stick Long Enough to Hold On
Having perched above $83,294, Bitcoin has been squared up at the convergence of resistance levels and important technical formations.Furthermore, standing at $82,500 offers a psychological barrier-the monthly open-making the price range highly sensitive. Failing a clear break above $84,000 with staying power in force could imply still more sellers stepping in.
There could be selling off toward previous lows if price breaks back within this zone, backed by buying support in past cases. Within these circumstances, the traders should at least remain neutral-to-bearish, waiting for indications of a sustained uptrend.The overall caution still remains valid over higher time frames, making a good close study of price action around these resistance areas.
