Bitcoin has once again demonstrated its downward trend after facing strong resistance near the $98,000 mark, indicating that sellers continue to dominate the market. With significant resistance levels holding firm and momentum leaning towards a decline, traders are now closely watching potential price movements if the bearish trend persists.
Rejection at Neckline Reinforces Bearish Sentiment
Crypto analyst Crypto Patel recently highlighted on X that Bitcoin was decisively pushed back from the neckline resistance between $94,000 and $98,000. This rejection solidifies a bearish market structure by confirming that sellers maintain control and preventing any substantial momentum shift upward.
From a technical perspective, Patel observed that Bitcoin has invalidated a Head and Shoulders pattern followed by breaking down from a bear-flag formation. This sequence further confirms the negative outlook as price action continues to form lower highs while struggling beneath key resistance zones. As long as BTC remains capped below this neckline area, the overall trend stays firmly bearish.
Looking forward, Patel pointed out that trading below $90,000 favors continued downside movement. Based on measured projections following this breakdown, Bitcoin could potentially drop toward support levels around $75,000 to $70,000 — implying an approximate 22% decrease from current prices.
Conversely, Patel emphasized that bullish momentum would only return if Bitcoin can reclaim and sustain above $92,000 convincingly. Until then, any upward rallies are expected to be temporary pullbacks rather than genuine reversals of the prevailing downtrend.
$89K: Key Level for Potential Short Squeeze in Bitcoin
An additional insight shared by Ardi highlights the importance of the $89,000 level as critical for any shift in market dynamics. A clear break above this threshold could trigger short-squeeze conditions where traders holding bearish positions begin covering their shorts due to mounting pressure.
Ardi also noted that maintaining control above $90,300 is crucial for bulls aiming to strengthen their grip on price action. Successfully crossing and holding beyond this point may open pathways toward higher targets near the liquidity zone around $92K — an area likely dense with stop orders waiting to be triggered.
On downside risks though , Ardi mentioned liquidity near approximately $86K has already been absorbed by recent moves , suggesting immediate downward objectives have mostly been met . Attention now shifts towards whether buyers can overcome overhead resistances forcing late-stage bears out , potentially sparking sharper upward reactions .
Featured image courtesy of Getty Images; chart sourced from Tradingview.com