Bitcoin Tests $92K Resistance: Breakout or Profit-Taking Ahead?

BTC bulls face a critical moment as price flirts with the $92K barrier—will traders hold for new highs or cash in gains? Market sentiment swings between greed and caution, with derivatives data showing overheated long positions. (And let’s be real: half the ’HODLers’ will paper-hand at the first 5% dip.)

Technical analysis showed BTC bulls were cooking

Source: BTC/USDT on TradingView

The aforementioned trendline resistance (white) was retested as support on Sunday, the 20th of April.

This breakout was accompanied by a steady uptrend on the OBV over the past three weeks, showing that buying pressure was prevalent.

A daily session close above $87.5k would flip the BTC swing structure bullishly, signaling a long-term uptrend was possible. The RSI was at 59, showing that bullish momentum was building.

However, the $92k level represented the lows of a former range, marking it as a strong resistance level.

A rising BTC while the Dow Jones Index (DJI) fell nearly 1000 points on Monday suggested crypto decoupled from the traditional markets.

Yet, this was the time when swing traders needed to brace for increased volatility and a potential reversal.

Source: Coinglass

The 3-month liquidation heatmap of Bitcoin indicated that the recent rally could see a bearish reversal at $89.2k-$91k. The price generally gravitates toward liquidity.

The liquidity pocket up to $91k saw a build-up of short liquidations since the 23rd of March.

Beyond $91k, the $100k was the next notable magnetic zone. The intervening region also had sizable liquidation levels. Below the current market price, the next liquidity pocket was at the $82.7k support.

The chances of a sustained move higher were hurt by these reversal zones, and traders should be cautious as the price approaches $91k.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion