Bitcoin is testing a key 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 decided whether Bitcoin will break out from these levels or be rejected.
MakroVision also raises a broader question about Bitcoin’s position in the overall market cycle. “Are we still in a bull market or have we entered a transition phase?” the firm asked in its latest market update. Its main reports examine macroeconomic correlations, historical patterns, and potential scenarios for Bitcoin and the broader cryptocurrency market.
Meanwhile, another analysis firm, Alphractal, notes that there has been a significant shift in market positioning over the past week. According to their analysis, Bitcoin saw an increase in long positions, especially when it first broke $88,000. While the highest trading activity and open interest was observed at $84,000, it is thought that a price drop below this level could put long positions at risk. If Bitcoin falls below this critical support, traders who entered short positions above $88,000 could profit.
*This is not investment advice.
