Bitcoin Stalls Below Local Resistance, Leaving Crypto Longs Uneasy

Bitcoin Stalls Below Local Resistance, Leaving Crypto Longs Uneasy – What’s Next?

Bitcoin's price has been fluctuating around the $90k mark recently, showing signs of consolidation. A significant downturn on January 6 led to substantial long liquidations, keeping traders on edge. As the altcoin market shows strength and capital inflows rise, the focus shifts to potential resistance levels and the future for crypto longs.

Key Takeaways

Bitcoin's price remains below the $94.5k resistance, affecting long-term bullish sentiment.
A steep price drop earlier this month resulted in over $440 million in liquidations, with many longs impacted.
The altcoin market is currently witnessing strength, offering some optimism for investors.
Key resistance levels of $94.5k, $90k, and $88k are critical for future price movement.

Bitcoin stalls below local resistance, leaving crypto longs on edge - What’s Next?

Bitcoin Price Action Analysis

Bitcoin’s [BTC] price has recently been stabilizing around the $90,000 zone. According to AMBCrypto, when viewed from a broader perspective, this price action could indicate a potential bottom. However, a price dip of $3,000 on January 6 led to around $440 million in long liquidations.

Crypto Liquidations

Source: CoinGlass

Data from CoinGlass revealed that during the last 24 hours at the time of writing, the market experienced $218.19 million in liquidations, with long positions accounting for $140.60 million.

Bitcoin Long Liquidations

Source: CryptoQuant

Over the past day, Bitcoin’s price has varied between the $89.3k and $91k levels. The recent attempt to test the $94.5k resistance had bulls hopeful, yet a breakout has not occurred yet. This stagnant state has contributed to a rise in long liquidations since January 5.

The Future for Crypto Long Positions

So far in January, the altcoin market has been outperforming BTC, which is encouraging for short-term traders. In a post shared on X, crypto analyst Maartuun pointed out that the latest bounce from $89.3k was backed by substantial capital inflows.

Despite this positive trend in spot CVD, swing traders should remain cautious and not rush into a long-term bullish mindset.

Bitcoin Open Interest

Source: CoinGlass

Open Interest for Bitcoin saw growth from $54.62 billion to $62.14 billion in January, but this growth has plateaued over the last day as BTC struggles to surpass the $92k mark. Additionally, Bitcoin Spot ETFs experienced significant outflows, with $1.128 billion exiting the market since January 6.

Key Resistance Levels for Bitcoin

Bitcoin 4-hour Chart

Source: BTC/USDT on TradingView

According to the 4-hour chart, the key resistance levels are $80.6k and $107.5k from a price drop observed in November. During December, Bitcoin's sideways movement established the $94.5k level as a local supply zone that remains unbroken. Traders looking to enter long positions may find greater confidence if the $94.5k resistance is surpassed. Local support levels at $90k and $88k could also present short-term buying opportunities for Bitcoin.

Conclusion

As Bitcoin continues to hover below crucial resistance levels, traders remain cautious yet hopeful. The altcoin market is showing promising signs, but investors should carefully monitor Bitcoin's movements to gauge the overall market sentiment going forward.