Bitcoin Confirms Bearish Trend Following $98,000 Rejection

Bitcoin Confirms Bearish Trend Following $98,000 Rejection — What’s Next for Traders?

Bitcoin has confirmed a bearish trend after encountering significant resistance near the $98,000 mark, indicating that sellers continue to dominate the market. With resistance levels holding firm and momentum tilting downward, traders are now focusing on potential future price movements if this downward trend persists.

Key Takeaways

Bitcoin faces a strong rejection near the $98,000 resistance level, reinforcing a bearish market structure.
According to analyst Crypto Patel, the failure to break above this level indicates continued seller control.
Bitcoin may decline further toward the $75,000–$70,000 support zone if it stays below the $90,000 level.
The $89,000 level is a crucial threshold for a potential short squeeze in the market.
A move above $90,300 could indicate a shift toward bullish sentiment.

Bitcoin

Bearish Bias Confirmed by Neckline Rejection

In a recent update on X, crypto analyst Crypto Patel highlighted that Bitcoin has decisively rejected the resistance range of $94,000–$98,000. This rejection reinforces the overall bearish structure of the market. The inability to reclaim this resistance zone suggests that sellers remain firmly in control, resulting in a bearish market sentiment.

From a technical perspective, Patel mentioned that Bitcoin has confirmed a failed Head and Shoulders pattern, followed by a breakdown from a bear flag. This progression supports a negative outlook, as price movements consistently form lower highs while struggling to break through significant resistance. As long as Bitcoin remains below this neckline, its overall outlook remains significantly bearish.

Bitcoin Source: Chart from Crypto Patel on X

Looking ahead, Patel indicated that trading below the $90,000 mark favors continued bearish movement. Based on the observed breakdown, Bitcoin could potentially drop towards the $75,000–$70,000 support area. This would represent a potential decline of about 22% from current price levels.

On the other hand, Patel emphasized that a bullish perspective would only emerge if Bitcoin could reclaim and establish itself above $92,000. Until such a breakthrough occurs, any upward price movements are likely to be fleeting—viewed more as opportunities for profit-taking rather than indicators of a trend reversal.

$89,000: Key Level for Potential Short Squeeze

Another update regarding Bitcoin shared by analyst Ardi revealed that the $89,000 level is a significant benchmark for any potential change in market momentum. A decisive break above this threshold could lead to short-squeeze conditions as bearish traders start to feel pressure and potentially exit their positions.

Ardi stressed the importance of the $90,300 level, identifying it as a crucial gatekeeper for the market. A strong reclaim and sustained movement above this level would be seen as a signal of increasing bullish momentum, allowing prices to rise toward the $92,000 liquidity band, where many stop-loss orders may be clustered.

On the downside, Ardi pointed out that liquidity near $86,000 has already been exhausted, indicating that immediate downside targets have largely been met. With that sweep completed, focus now shifts to whether buyers can overcome the overhead resistance and encourage late bearish traders to exit their positions, potentially setting up a sharp upward response.

Bitcoin BTC trading at $87,878 on the 1D chart | Source: BTCUSDT on Tradingview.com