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Bitcoin is at a six-month low, but investors are anticipating a squeeze at $98,000.
Although Bitcoin charts are predicting further declines, investors are hoping a short squeeze toward $98,000 will reverse the downtrend.
Bitcoin (BTC) has been trending lower along with the broader cryptocurrency market since November 3rd, falling to a six-month low of $88,267 on Thursday. With key economic data releases on Thursday and Friday, markets may experience price volatility towards key BTC price levels over the next few days.
Bitcoin needs to reclaim $98,000 to “reverse” its upward momentum.
Bitcoin’s recent decline has caused the BTC/USD pair to lose critical support levels, including the 50-week exponential moving average (EMA) at around $100,000 and the yearly open at $93,300.
This has created mixed sentiment among market participants about whether the bull market is over or whether Bitcoin has formed a bottom.
Bitcoin is hovering around $90,000, and its price has reached “cycle-level exhaustion.”
The findings indicate that Bitcoin’s price momentum has fallen back to the levels it bottomed in March and after the market crash on October 10.
“Reclaiming the $97,000–$98,500 range, where the bottoms are formed, would make the momentum constructive; failure to do so would give the bears complete control.”
Just above the spot price, Bitcoin needs to turn the local high at $94,000 into support to "break the current downtrend."
According to the Cost Floor Heatmap, this is a key demand area where more than 290,300 BTC have been purchased.
Many investors are expecting liquidity near $98,000, and recent data showed the price has exhausted liquidity around $92,000. More than $2.1 billion in sell orders were placed between $96,600 and $98,500.
If the $98,000 level is broken, a short squeeze toward $100,000 could occur.
US spot Bitcoin ETFs saw $75 million in inflows on Wednesday after five days of outflows, signaling an early sign of stability in BTC markets.
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