A bearish engulfing candle on Bitcoin’s daily chart is a negative development, but one analyst says $BTC price is fine above $88,000.
Bitcoin’s BTC $97,604 price exhibited a bearish engulfing pattern on the daily chart for the first time since Oct. 21, retesting its support at $95,000 before descending lower.
While Bitcoin’s long-term market structure remains unchanged, one analyst underlined key price levels for Bitcoin that need to be observed over the next few days.
Bitcoin “in good shape” above $88,000
total crypto liquidation surpassed $1.6 billion on Dec. 9, its largest event since 2021, with $142 million in Bitcoin long positions wiped out.
Despite a significant leverage flush, Rafael Schultze-Kraft, co-founder of GlassNode, indicated that Bitcoin remains in “good shape” above $88,000.
The data scientist explained that $96,000 remains a key level for Bitcoin since the $96,000-$98,000 range was a dominant zone of investor interest. However, Schultze-Kraft added,
“However, what’s striking is the large gap in accumulated supply below $88k. There’s minimal support in this range, with the next major accumulation zone visible only at $70k an below.”
Similarly, Axel Adler Jr, a Bitcoin researcher, highlighted that the realized capitalization of new investors holding BTC has risen from $48 billion to $343 billion since the start of the cycle. It means that the selling pressure discharged by long-term terms has been consistently absorbed by newer entrants regularly.
