After a brief upswing, the Bitcoin price is close to dropping back below $96,000, which could push it into a deep bearish well. The market sentiments have again returned to fear of being neutral, suggesting the traders seem uncertain about the next price action. On the other hand, the BTC dominance remains above the gains, and the altcoins are performing well comparatively, which raises concerns over the next price action.
Now that the BTC price is assumed to have entered a prolonged consolidated phase, can we expect a breakout after a prolonged compression?
The BTC price has attempted to rise above $100K, which attracted massive selling pressure as bulls displayed some weakness. This may point towards an extended bearish action, activating the lower targets not visited in the past 6 months. On the other hand, spot ETF outflows saw nearly $500 million over the past three days, which may validate the bearish claim. As the price remains restricted within a range, Bitcoin degen longs and shorts are mounting up.
As seen in the above chart, liquidity has been mounting on either side of the token. Usually, liquidity drives the price movement, and considering the current trade setup, the longs and shorts, which are mountain-up, both are liquidity. Therefore, the ones who will try hard to take it are the whales, while the retail traders may bear the heat. What’s next? Will the BTC price trigger a rebound back to $100K before the monthly close?
As seen in the above chart, the BTC price is consolidating within a narrow range and preventing the bears from dragging the levels below the support. Meanwhile, the technicals point towards a bearish continuation as the RSI and the CMF are heading towards the south. This indicates that the rally and the bulls are both becoming weak, which may support a bearish narrative. Therefore, the current trade setup suggests that the Bitcoin (BTC) price is prone to a pullback that may drag the levels back below $93,000, probably during the monthly close.
