Bitcoin Breaks $90K: Will It Hold or Fall Back Below?
- Bitcoin breaks above the $90K-$91K resistance, surpassing the Daily 200MA/EMA, crucial for continued growth.
- Analyst warns Bitcoin must close above $90K-$91K for the breakout to be valid, avoiding a potential reversal.
- Consolidation at higher levels could fuel Bitcoins next upward move, though volatility remains a significant risk.
Bitcoin has been able to go out of the previous range and penetrated through the Daily 200MA/EMA. This comes amid an attempt to break through the critical resistance level in between $90K and $91K. Daan Crypto Trades has mentioned that it is crucial to maintain this level for further upward movement.
Sustaining the Breakout
The $90K-$91K region emerged to be viewed as critical for BTC. As pointed out by Daan Crypto Trades, the BTC needs to stay above this zone to determine that it is a real breakout. He also notes that price wicks are normal but cautions that the bears will only be disappointed when price maintains above this level on a closing basis. Failure to sustain this outlook can lead to a reversal, not to the benefit of the bullish traders.
Source: X
Daan, however, opines that consolidation at these higher levels would be a good thing for Bitcoin. Such a phase would allow Bitcoin to get back on its feet, ultimately the boost needed for another skyrocket. This may encourage more trading as it is an indication that the market is not in a state of a temporary bubble but is set for the next phase upwards.
If the consolidation occurs, it will open up the possibility of Bitcoin to even more appreciated levels. Nonetheless, there is no clear trend, and everyone is waiting for its failure indicators. Certainly, it is noteworthy that BTC is one of the most volatile instruments, and every upward movement implies the possibility of sharp declines.
Bitcoins Critical Market Moment
This could make or break the market position in the following days. If BTC manages to stand above $90K-$91K and stays stable there, one might expect it to start an upward movement to new record highs. Still, if it is unable to sustain itself around this level, BTCs price may plunge back into this range, to the detriment of those expecting for a continuous uphill trend. As of press time, BTC is trading at $93,731, showing a 5.77% increase over the past day.
Source: TradingView
Despite these advancements, the analyst cautions that the future of the cryptocurrency market remains uncertain. For the traders, he said they should be keen and keep a close check on the performance of Bitcoin. It will be a favorable sign if the price consolidates and stabilizes within the $90 K-$91 K range, but the price carries a high risk of volatility. All focus is now on Bitcoin in its attempts to consolidate and move to another level in its price discovery process.
Read more: https://www.tronweekly.com/bitcoin-breaks-90k-will-it-hold-or-fall/
Text source: TronWeekly
