Will Bitcoin (BTC) price absorb incoming supply and rally or test the crucial support level at $90,000?
Bitcoin’s loss of the $94,000 support level has pushed market-wide crypto liquidations to $242.21 million. However, unlike previous liquidation runs, the difference between long and short liquidations has narrowed significantly.
Liquidations on the long side total $128.98 million, while liquidations on the short side total $113.28 million. Under such conditions, will the Doji formation on the Bitcoin chart lead to a rebound this week?
Bitcoin price analysis
In the daily chart, BTC price action shows an intraday decline of 1.06%. Bitcoin is currently trading at $93,990, forming its fourth consecutive red candle.
Furthermore, as predicted in our last price analysis article, BTC price managed to create a Doji candle with lower price rejection against the 50-day EMA. This has increased the likelihood of a Morning Star pattern.
However, the intraday pullback limits the chances. However, as Bitcoin is able to hold above the 50-day EMA line, the chances of a comeback are still strong. BTC experienced multiple lower price rejections and rallies from levels above $90,000 in the last month.
However, the slowdown in bullish momentum has pushed the RSI line lower to 42.38 as it moves ever closer to the oversold borderline. Therefore, the technical indicator maintains a bearish outlook.
Bitcoin spot ETFs lose $226 million on Monday
Amid the loss of momentum, institutional support has failed to resurface for the largest cryptocurrency, marking its third consecutive bearish day. Daily net outflow for US spot Bitcoin ETFs remains…
