Bitcoin Price Consolidates Around $90,000 – Analysts Expect Volatile Breakout

The Bitcoin price is currently trading at around $89,600 and thus remains stable within its consolidation range ^[1]. The largest cryptocurrency moved between important support and resistance zones over the past week, with markets waiting for a new impulse.

Sideways Movement After Establishing a Bottom

Bitcoin had already found a bottom in the $85,000 area last week ^[1]. On the upside, the zone just below $90,000 remains a key hurdle for now ^[1]. At the beginning of the new week, Bitcoin managed a breakout above the $90,000 mark, suggesting that buyers are attempting a comeback ^[2].

However, the recovery from the $84,000 level is encountering resistance at the 20-day EMA ($89,322), with a positive sign being that buyers are maintaining pressure ^[2]. A close above the 20-day EMA would open the doors for a rise to the 50-day SMA ($92,754) and then to the overhead resistance at $94,589 ^[2].

Divided Opinions on Further Development

Analysts are divided in their assessment of Bitcoin's next major move. While some expect a rise to a new all-time high, others anticipate a decline to as low as $70,000 ^[2].

Santiment founder Maksim Balashevich is not convinced that a bottom has already been reached. In a YouTube video, Balashevich explained that BTC could fall to $74,000, as there is still a lot of optimism online ^[2]. He added that a decline toward this level "could provide a very good setup" for traders ^[2].

Long-Term Potential Despite Short-Term Uncertainty

Although short-term development appears uncertain, $25 billion in inflows since the beginning of the year into BlackRock's spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), demonstrate long-term potential ^[2].

Bloomberg ETF analyst Eric Balchunas wrote in a post on X that IBIT is the only fund in the top cohort with negative returns for the year, ranking sixth ^[2]. If a negative year could attract $25 billion, "imagine the flow potential in a good year," Balchunas wrote ^[2].

Critical Levels for Traders

A close above $94,589 would suggest that the correction phase may be over ^[2]. In this case, the BTC/USDT pair could rise to $100,000 and later to $107,500 ^[2]. On the downside, bears would regain control with a close below the $84,000 support level ^[2].

Sellers are expected to defend the $94,589 level with full force, as a close above it would suggest that the correction phase could be over ^[2]. The market has been moving sideways for days, and accordingly, important price ranges and market data will be in focus this week ^[1].