Bitcoin (BTC) Price Reaches $94K: V-Shaped Recovery Eyes $96K
Will a short-term recovery in Bitcoin (BTC) price, reflecting bearish exhaustion, push the price above $95,000?
After a short recovery period over the past 24 hours. Bitcoin price It reclaimed the $94,000 level, starting a V-shaped recovery from a low of $91,000.
Will this recovery push the price of Bitcoin towards the $100,000 level?
Bitcoin price analysis
On the 4-hour chart, Bitcoin price trend reveals heavy demand for Bitcoin at the $90,742 support level, triggering an early reversal from the 24-hour low at $91,215. This reversal resulted in three consecutive bullish candles.
Furthermore, the bulls were able to reverse the large 4-hour bearish candle, which 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 we mentioned in Previous articleA bullish divergence in the RSI line triggered a quick reversal rally after bears were trapped below the $92,654 support level. As the RSI rises, the momentum is clearly increasing, indicating that a bottom may be forming in the ongoing correction.
Bitcoin derivatives turn green
Despite the short-lived recovery, 24-hour liquidations in the cryptocurrency market reached $367 million, with bullish traders losing $254.53 million.
However, a short-term recovery is evident, with $13 million liquidated over the course of 4 hours – $10.48 million of which came from bearish positions.
Bitcoin derivatives Data It shows open interest holding steady above $60 billion, currently at $61.02 billion. The buy-to-sell ratio improved slightly to 0.9539. While the ratio is still less than 1, it favors short trades.
In addition, the financing rate is gradually improving, increasing from 0.0010% to 0.0044%. This indicates increased demand for long positions as traders become more optimistic about Bitcoin’s recovery.
Bitcoin price target
As the recovery continues, Bitcoin is approaching the $95,190 resistance level, with the bulls gradually taking control. Based on Bitcoin price action, the breakout may face resistance at the 200 EMA, which is located 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.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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