Bitcoin Price Analysis: Bulls Remain Passive as BTC Plunges Below $94,000
The past weekend saw a bearish turn for the Bitcoin price rally, with the token dropping below $94,000 after a bearish weekend. Despite reaching a local high of $97,895, the volume remained restricted within a range, indicating that the bulls are passive but providing support at $94,000. This support may lead to a bullish uplift in the near future.
Market Sentiment and Support Levels
Initially, breaking the $95,000 support range was expected to push the BTC price down to $92,000. However, the ongoing price action shows the strength of the bulls, suggesting a rebound is imminent. The Bitcoin price often fills CME gaps around current price levels, with lower gaps triggering strong pullbacks and upper gaps pushing the token higher. The current trade setup shows gaps on both sides of the price, making the upcoming price action uncertain.
Currently, two gaps have formed near the current price: one between $96,400 and $97,600, and the other between $92,500 and $91,700. If the bullish trend continues, BTC price may focus on filling the lower gap first, potentially leading to a significant bullish rebound. This could mean a drop below $92,000, which could serve as the local bottom of the ongoing pullback.
Upcoming Events and Price Outlook
The week ahead is expected to be volatile, with the FOMC meeting and Coinbase earnings scheduled. If the price triggers a long trade, it could reach local highs at $98,000, possibly resulting in some liquidations after reclaiming previous range highs. Despite this, the BTC OBV daily trend remains bullish, suggesting that any pullback may not be too deep.
It will be interesting to see which CME gap Bitcoin chooses to close first, as the subsequent price action may hinge on this decision.