Bitcoin has reaffirmed its bearish structure after a strong rejection near $98,000, indicating that sellers remain firmly in control. With key resistance holding and momentum tilting downward, traders are now shifting their focus to where the price might go if the downward trend continues to unfold.
Rejection at the support level reinforces the bearish bias
Cryptocurrency analyst Crypto Patel, in a recent post on X, highlighted that Bitcoin has firmly rejected the resistance at the support level of $94,000-$98,000, a move that reinforces a bearish market structure. The rejection indicates that sellers remain firmly in control, with the failure to reclaim this zone preventing any significant change in momentum.
From a technical standpoint, Patel noted that Bitcoin has confirmed a failed Head and Shoulders pattern, followed by a bearish flag break. This sequence reinforces the bearish outlook, as price action continues to respect lower lows while struggling to overcome key resistance. As long as BTC remains constrained below the support level, the overall trend remains decidedly bearish.
As we look ahead, Patel emphasized that price action below the $90,000 level favors the continuation of the downward trend. Based on the measured move from the break, Bitcoin could slide towards the $75,000-$70,000 support region, representing a potential decline of around 22% from current levels.
On the other hand, Patel emphasized that a bullish bias would only return if Bitcoin achieves a strong recovery and acceptance above $92,000. Until that happens, any bullish attempt is likely to be short-lived, turning rallies into opportunities to sell rather than signals of a trend reversal.
$89,000: The trigger for a possible Bitcoin short squeeze
According to another Bitcoin publication shared by Ardi, the $89,000 level stands out as a critical threshold for any potential change in momentum. A decisive break above this zone could begin to trigger short squeeze conditions, as bearish positions that entered at a lower level start to feel pressure and cover.
He also emphasized that $90,300 remains the main market guardian. A sustained recovery and acceptance above this level would signal improving bullish control, allowing the price to move upward in search of the $92,000 liquidity band, where a concentration of stops and pending orders is likely to be found.
On the bearish side, Ardi noted that the liquidity near $86,000 has already been absorbed, suggesting that immediate bearish targets have largely been met. With that sweep complete, attention now shifts to whether the bulls can push through resistance and force late bears to exit, which would lay the groundwork for a more pronounced bullish reaction.