Bitcoin targets $96K amid diamond pattern
Bitcoin (CRYPTO:BTC) is currently experiencing bullish momentum, fueled by traders' anticipation of a crypto-related executive order from President Trump.
However, analysts caution that any disappointment regarding this potential announcement could lead to a significant price correction.
Currently priced at approximately $103,476, Bitcoin is showing signs of a possible dip below the critical support level of $101,000.
This level is crucial as it could trigger over $1.3 billion in long liquidations across various exchanges.
Technical analysis indicates that Bitcoin may be forming a "diamond pattern," which often signals a momentum reversal.
Crypto trader Blackmore noted that this pattern typically occurs at local price tops or bottoms and could result in a correction targeting the $94,000 to $96,000 range.
He advised caution, suggesting that traders should wait for the pattern to fully develop before making any decisions.
Ki Young Ju, CEO of CryptoQuant, expressed uncertainty about the end of the bull cycle, indicating that Bitcoin might experience sideways movement for several months despite some on-chain indicators remaining bullish.
Rekt Capital highlighted that Bitcoin's ability to maintain above $101,000 is essential to avoid further downside risks.
The market remains sensitive to tightening economic conditions in the U.S., which could exacerbate volatility.
Ryan Lee from Bitget Research pointed out that recent concerns over potential global interest rate hikes have contributed to bearish sentiment in the short term.
Despite these challenges, institutional buying may provide some price stabilisation.
At the time of reporting, the Bitcoin (BTC) price was $103,641.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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