Bitcoin Hovers at ‘Critical’ Support Level as Analysts Debate Next Move

Bitcoin has traded in a very tight range around the $90,000 level this weekend, with a brief dip below it in late trading on Saturday.

There have been a few possibly manipulated leverage flushes over the past couple of weeks, but no clear direction for the asset. Bitcoin is at a “critical on-chain support” level, observed Alphractal CEO Joao Wedson on Saturday.

He cited the “Realized Cap Impulse,” which is testing a decisive region, “historically, a zone that often precedes healthy pullbacks,” before cautioning that “demand needs to emerge now.”

A Bearish Consolidation Pattern

“BTC is in a bearish consolidation pattern no matter how you frame it,” said analyst “Colin,” who added that we were “still waiting for BTC to make a decision and choose a direction, but it’s gotta be close.”

The analyst said that a breakdown was the most likely outcome because “the trend tends to continue.”

Meanwhile, Glassnode researcher “CryptoVizArt” said that the current consolidation range is “generating a magnitude of stress comparable to late January 2022, with Relative Unrealized Loss approaching 10% of market cap.”

Is Anyone Bullish?

The majority of analysts were leaning bearish this weekend, but a few maintained hope of a recovery.

“Bitcoin is currently trading extremely correctively,” said analyst “Sykodelic” before adding that there were small pumps, sharp dumps, “hunting liquidity with no true direction.” The market needs to sweep lows at the low $80,000 range before any reversal, they said.

BTC was trading flat on the day at $90,300 at the time of writing, and a Sunday flush, as we’ve seen previously, could be on the cards again today.

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