The recent rally in Bitcoin's value has faced significant resistance, particularly at the $93,000 mark, resulting in a decline towards $89,250. This downturn marks the third rejection at the $93,000 level, raising concerns about potential further bearish trends. Currently, Bitcoin is navigating a crucial trading range between $89,200 and $90,500, where bulls could initiate new long positions if momentum shifts positively.
Open interest data indicates an increase during the recent dip, suggesting that short positions are accumulating near the $90,000 level. A robust close above $91,700 could signal a short squeeze, paving the way for another attempt at the $93,000 resistance. Conversely, if Bitcoin fails to maintain support at $89,000, it risks dropping to the $86,000 to $87,000 range, where significant liquidity exists.
As the week progresses, Bitcoin could experience sideways movement, with the potential for a bullish recovery if it can break past the critical threshold of $91,666. This would establish a higher low on the lower time-frame trend and could entrap late shorts positioned between $90,000 and $92,000.