After a strong rebound near $98,000, Bitcoin reaffirmed its bearish structure, indicating that sellers remain firmly in control. With key resistance holding and momentum trending down, traders are now turning their focus to where the price could go next if the downside continues.
Neckline rejection locks in bearish bias
Crypto analyst Crypto Patel, in a recent post on A rejection indicates that sellers remain firmly in control, and failure to regain this zone will preclude any meaningful change in momentum.
From a technical perspective, Patel pointed out that Bitcoin confirmed the failure of the head and shoulders pattern, followed by a bear flag breakdown. This series of developments strengthens the bearish outlook as the price trend remains high while struggling below key resistance levels. As long as BTC remains constrained below the neckline, the overall trend remains decisively bearish.
Looking ahead, Patel emphasized that price action below the $90,000 level favors further downside continuation. Based on the measured move from the breakdown, Bitcoin could slide towards the $75,000 to $70,000 support area, potentially leading to a decline of around 22% from current levels.
On the other hand, Patel emphasized that the bullish bias will only return if Bitcoin can achieve strong recovery and acceptance above $92,000. Until that happens, any attempt to move higher will be short-lived and will serve as an opportunity to move higher, rather than a sign of a trend reversal.
$89,000: The fuse that resolves a potential Bitcoin short squeeze
According to another Bitcoin post shared by Ardi, the $89,000 level stands out as an important threshold for a potential momentum change. A decisive break above this zone could begin to trigger a short squeeze condition as the bearish positions that entered below begin to feel pressure and begin to cover.
He further emphasized that $90,300 remains the key gatekeeper for the market. A strong recovery and continued acceptance above this level would indicate improved bullish control and allow the price to move higher in search of the $92,000 liquidity band where stop and rest orders are likely concentrated.
On the downside, Aldi noted that liquidity around $86,000 has already been taken, suggesting that the near-term downside target is largely met. With this sweep complete, attention now turns to whether the bulls can push through the overhead resistance and force the lagging bears out of the game, setting the stage for a sharper upside reaction.
