Will the short-term recovery in Bitcoin (BTC) price, reflecting bearish exhaustion, push the price back above $95k?
After a brief recovery over the past 24 hours, Bitcoin’s price has reclaimed the $94,000 level, initiating a V-shaped recovery from a low of $91k.
Will this recovery drive Bitcoin’s price toward the $100,000 mark?
Bitcoin Price Analysis
On the 4-hour chart, the BTC price trend reveals significant demand for Bitcoin at the $90,742 support level, resulting in an early reversal from the 24-hour low of $91,215. This reversal has led to three consecutive bullish candles.
Moreover, the bulls have managed to reverse the large 4-hour bearish engulfing candle, which had caused a 2.45% drop the previous night. However, the ongoing correction has caused the 50 and 200 EMA lines to converge, threatening a potential death cross.
As mentioned in our previous article, the bullish divergence in the RSI line led to a quick reversal rally after trapping the bears below the $92,654 support level. With the rising RSI, momentum is clearly increasing, suggesting that a bottom may be forming in the ongoing correction.
Bitcoin Derivatives Turn Green
Despite the short-term recovery, the 24-hour liquidations in the crypto market have reached $367 million, with bullish players losing $254.53 million.
However, short-term recovery is evident, with $13 million in liquidations occurring over a 4-hour period—$10.48 million of which came from bearish positions.
The Bitcoin derivatives data shows that open interest is holding steady above $60 billion, currently at $61.02 billion. The long-to-short ratio has improved slightly to 0.9539. While the ratio is still below 1, it favors shorts.
Additionally, the funding rate is gradually improving, rising from 0.0010% to 0.0044%. This suggests increased demand for long positions as traders grow more optimistic about Bitcoin’s recovery.
BTC Price Target
As the recovery continues, Bitcoin is approaching the $95,190 resistance level, with bulls gradually taking control. Based on BTC price action, a breakout could face resistance at the 200 EMA, which sits at $96,216.
On the other hand, a reversal from the 20 EMA near the $95,119 level could test the $90,742 support level.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
