Bitcoin Drops 4% From $98,000 High, Bulls Defend $94,000 Support

Bitcoin has recently experienced a slight pullback after reaching local highs close to $98,000, leading to a bearish weekend where the token plunged below $94,000. Despite this correction, the bulls have shown significant strength by offering support at $94,000, which may uplift the token within the bullish range in the near future. The current trade setup hints at both a bullish rebound and a bearish continuation, raising skepticism over the upcoming BTC price rally.

Breaking the $95,000 support range was initially thought to drag the BTC price to $92,000. However, the ongoing price action suggests that the bulls are maintaining their strength, making a rebound seem inevitable. Bitcoin is known to fill CME gaps, which have been formed around the current price levels. The lower gaps usually trigger a strong pullback, while the gaps at the upper levels push the token higher. The current trade setup shows a gap on either side of the price, keeping the upcoming price action in an ambiguous state.

Currently, two gaps have been formed close to the current price, one between $96,400 and $97,600, and the other between $92,500 and $91,700. If the bullish trend is in place, the BTC price may focus on filling in the lower gap first, which may be accompanied by a massive bullish rebound. This suggests the price could be primed to drop below $92,000, which could be the local bottom of the persisting pullback.

Analysts are optimistic about Bitcoin's potential for a rebound, with the cryptocurrency currently trading above the $95,000 level and bullish momentum building. The formation of two gaps near the current price suggests significant resistance and support at these levels, which could influence the direction of Bitcoin's price movement in the near future. The bullish sentiment is further bolstered by the fact that Bitcoin is trading above the short-term holder cost basis, indicating that many investors are holding onto their positions despite the recent pullback.

Analysts are predicting that Bitcoin will continue to rise in the long term, despite the short-term volatility. According to the analyst's forecast, the cryptocurrency is expected to break through its current resistance zone and reach a higher high. This prediction is based on the fact that Bitcoin has been repeating patterns of support turned resistance in the past, and it is likely to do so again in the future. However, it is important to note that this is a forecast and not a guarantee of future performance.

In conclusion, while Bitcoin has experienced a slight pullback in recent days, the overall sentiment remains bullish. The cryptocurrency is trading above key support levels, and there is significant resistance and support at the current price levels. Investors should keep an eye on the $96,400 and $97,600 levels, as these could be key resistance levels in the near future. The upcoming price action will be dependent on which CME gap the Bitcoin price chooses to close first, making it an interesting development to watch.