Bitcoin trades near $97K but struggles with strong resistance that may cause a price decline soon.
Market indicators hint at bearish movement, with traders watching $91K and $85K as potential support levels.
Rising trading volumes and robust activity suggest heightened investor focus on Bitcoin's next directional move.
BTC's value may see a drop as technical indicators point to a potential negative reversal. The currency is trading near $98,200, but it faces strong obstacles near $98,550, which could trigger a downturn. A bearish market structure, including a double-top formation and other resistance signals, suggests lower price targets ahead.
Source: Twitter (X)
Traders following the analysis of Crypto Patel are eyeing $91,000 and $85,000 as the key price levels to watch. Patel’s setup relies on factors such as the double top pattern, a bearish order block, and a price gap, which together suggest that Bitcoin could struggle to hold its current value.
Key Resistance Levels Point to Challenges
Bitcoin faces a critical resistance zone near $98,550, where sellers have been re-entering the market. This area is identified as a bearish order block, a technical signal often associated with price reversals.
In addition to this, a Fair Value Gap has been highlighted around this level, which signals inefficiencies in the market’s price movement. Such gaps are often filled as the market balances, which could lead to Bitcoin’s price correcting downward.
The double-top pattern seen on Bitcoin’s 4-hour chart provides further evidence of bearish momentum. This pattern often suggests that the price has failed to maintain its upward trajectory and is likely to decline.
Key Levels to Watch as Targets Are Set
Crypto Patel has set clear short-term targets at $91,000 and $85,000 for traders. The $91,000 level serves as the first support zone, where some consolidation could take place if the bearish momentum continues.
The second target at $85,000 is another key level, where stronger buying interest might emerge. These areas are critical for traders seeking to assess whether Bitcoin will stabilize or fall further.
Recent shifts in market structure, such as the break of a key upward trendline, support the likelihood of a downward trajectory. Additionally, past swing lows in Bitcoin’s price action suggest a lack of momentum to reclaim higher levels.
Managing Risks During Price Volatility
To minimize risk in this trade, Crypto Patel has recommended an exit plan. If the price closes above its all-time high on a 4-hour chart, traders are advised to close their short positions. This approach aims to limit losses while allowing for considerable potential gains if the downside setup unfolds as expected.
Effective risk management and careful monitoring of Bitcoin’s price at these critical levels remain essential for traders.
Bitcoin Nears $97K as Market Momentum Strengthens
The token is trading at $96,962.56, reflecting a daily increase of 1.23%, with the market capitalization reaching $1.92 trillion. The coin has shown resilience, with a 24-hour trading volume surging by 13.67% to $53.78 billion.
Bitcoin’s Fully Diluted Valuation now stands at $2.04 trillion, while its circulating supply nears the total supply cap of 21 million BTC at 19.79 million BTC. These metrics suggest growing market activity as Bitcoin continues to consolidate its position at the $96K level, following a day of mixed price action.
The price chart reveals a consistent upward trajectory earlier in the day, peaking before a moderate pullback that maintained Bitcoin above $96,500. Market indicators suggest heightened investor interest, with Bitcoin’s Volume-to-Market Cap ratio at 2.81%, signaling robust trading activity relative to its market value.
Source: CoinMarketap
The chart highlights a stable support zone near $95,780, while resistance levels around $98,000 present potential challenges for further upward momentum. As Bitcoin approaches $97,000, traders remain watchful of market trends, liquidity, and volatility, which could dictate its next directional move.
