Bitcoin's Short-Term Prospects: Navigating the Crucial $90,650 Resistance Level

Summary:
Bitcoin faces a crucial resistance level at $90,650 that will determine its short-term price trajectory. Analyst PlanD highlights an ascending triangle formation on the BTCUSD 4-hour chart, suggesting possible upward momentum towards $97,000 if this resistance level is broken. However, caution is advised as this potential rally may only provide temporary relief in an ongoing bearish market.

Key Takeaways

Resistance Level: Bitcoin faces significant resistance at $90,650, having struggled to maintain this level since mid-December.
Bullish Chart Pattern: An ascending triangle is forming on the BTCUSD 4-hour chart, indicating potential buying pressure.
Potential Price Surge: Analysts predict Bitcoin could surge towards the $93,500 to $97,000 range if it breaks the $90,650 resistance.
Caution Advised: The anticipated price gain should be seen as a short-term rally rather than a change in the bearish trend.
Current Market Status: Bitcoin is trading at $87,661, with increased trading volume suggesting heightened activity before a major price move.

Bitcoin

Bitcoin's Chart Analysis

Popular crypto analyst PlanD has pointed out a significant development on the Bitcoin price chart, particularly around the $90,650 level. Bitcoin has struggled to surpass the crucial $90,000 region since it dropped below this threshold in mid-December.

Possibility of a Rally to $97,000

In a recent post on X, PlanD notes the emergence of an ascending triangle pattern on the BTCUSD 4-hour chart, stemming from last week's price movements. This technical formation occurs when the price creates higher lows while repeatedly encountering resistance at a horizontal level.

In technical analysis, an ascending triangle pattern typically indicates increasing buying pressure, suggesting a possible breakout. PlanD highlights that the flat resistance at $90,650 has seen two price rejections, making it a crucial level for breaking out. If market bulls manage to push through this resistance, the analyst believes Bitcoin could experience a notable surge towards the $93,500 to $97,000 range.

Bitcoin

This potential price increase could be intensified by a short-squeeze effect, as short positions around this resistance may be forced to close rapidly. However, PlanD urges traders and investors to view any price increase as merely a "short-term stop hunt/relief rally," rather than signaling a long-term trend reversal given Bitcoin's bearish performance in Q4 2025.

The seasoned analyst recommends a cautious approach, advising investors to re-evaluate their positions once Bitcoin approaches the $97,000 mark unless it decisively exceeds this target.

Current Bitcoin Market Landscape

As of the latest update, Bitcoin is trading at $87,661, reflecting a minor decline of 0.18% over the last day. Interestingly, the daily trading volume has surged by 133.35%, indicating increased activity as traders position themselves ahead of a potential significant market move.

Amidst this backdrop, market analysts maintain their positions. Notably, prominent market expert Ali Martinez comments that the bear market commenced after Bitcoin peaked at its all-time high of $126,100 in early October. He asserts that the current market phase is one of complacency, where investors are anticipating further surges rather than actively managing their risk.

Conversely, bullish analyst Ash Crypto believes the bull market remains intact, citing recent price increases and new all-time highs in commodity markets, such as gold and silver. This analyst predicts that capital will eventually rotate from these markets into Bitcoin, establishing a price target of $150,000 for the upcoming year.

Bitcoin
BTC trading at $87,565 on the daily chart | Source: BTCUSDT chart on Tradingview.com