Bitcoin’s Key Resistance Testing

Bitcoin is currently testing an important resistance zone between $88,000 and $91,700, where multiple liquidity pools and resistance levels converge, according to cryptocurrency analytics firm MakroVision.

The firm suggests that the market has not yet made a decision on whether Bitcoin will break out from these levels or face rejection.

MakroVision raises a broader question regarding Bitcoin’s position in the overall market cycle: “Are we still in a bull market or have we entered a transition phase?” This query is part of its latest market update, which examines macroeconomic correlations, historical patterns, and potential scenarios for Bitcoin and the broader cryptocurrency market.

Additionally, another analysis firm, Alphractal, notes a significant shift in market positioning over the past week. Their analysis indicates that Bitcoin experienced an increase in long positions, especially after initially breaking $88,000. The highest trading activity and open interest occurred at $84,000; however, a drop below this level could jeopardize long positions. Traders entering short positions above $88,000 might stand to profit if Bitcoin falls below this critical support.

> This is not investment advice.