Following a notable weekend dip triggered by Donald Trump’s recent tariff threats against eight European nations, Bitcoin appears to have found a degree of support at $93,000. However, the cryptocurrency remains down 2.66% for the day, while the overall crypto market capitalization has decreased by approximately 2.61%, resting at around $3.14 trillion.
The Bitcoin liquidation heatmap from Coinglass indicates that substantial liquidity exists just below the current price, particularly in the $90,000 range. This suggests that many traders are positioning themselves for upward movements. If Bitcoin’s price dips below this support level, it could trigger a wave of forced selling, potentially exacerbating the decline. Conversely, the liquidity above the current price level is sparser and more diffuse, implying that any upward movement would require significant buying interest, not just a reaction from short sellers.
Bitcoin faced rejection at the $94,500–$95,000 resistance zone once again, which has become increasingly prominent as a cap on price increases. Every attempt to breach this level has resulted in pullbacks, with the most recent failure leading to a swift retreat back into the mid-range, effectively dampening short-term bullish momentum.
On the downside, the $87,000 mark is critical to monitor as it coincides with previous consolidation points and range lows. A breach of this support could lead Bitcoin to quickly slide into lower demand zones, possibly reaching the low $80,000 region.
Indicators such as the Relative Strength Index (RSI) now hover around 37, signaling a rapid cooling in momentum and tipping towards a bearish outlook, though it has not yet reached oversold territory. This leaves room for further declines before buyers are compelled to step in. Additionally, the Moving Average Convergence Divergence (MACD) has also turned bearish, reinforcing the view that the recent price drop was a rejection rather than a healthy correction.
Currently, Bitcoin remains in a range-bound state. For bullish sentiment to gain traction, it must convincingly reclaim and maintain a position above $94,500, which could pave the way for a push toward the $100,000 milestone. Continued weakness, however, raises the likelihood of another test of its lower support levels.
