Bitcoin crash: Where will the price go in the coming weeks?

$1 Billion Up in Smoke: Bulls Caught in the Trap

The punishment was immediate and painful. Within 24 hours, the market recorded over $1.09 billion in liquidations, a figure that speaks to the violence of the move. What’s striking about this drop is the nature of the liquidated positions: approximately 92% of these losses came from long positions (bulls), predominantly on Bitcoin.

This massive imbalance indicates that traders were excessively confident, heavily positioned for a continuation of the bullish rally. The market, as it so often does, punished this excess optimism with a brutal long squeeze. The price of Bitcoin slid down to $87,000, sweeping stops and excessive leverage accumulated in recent days.

Technical Analysis: Has the Key Support Been Broken?

From a technical standpoint, the situation deteriorated rapidly. Bitcoin broke through several intermediate support zones without offering significant resistance. The $91,800 level, identified by several analysts as a crucial pivot zone, gave way under selling pressure. This level now acts as an immediate resistance that bulls will need to reclaim to hope for a trend reversal.

Currently, the price is attempting to stabilize around the $89,000 – $89,500 zone. Momentum indicators, like the RSI, are plunging into oversold territory. Indeed, the 16H RSI reached the oversold zone for the first time since November 20th, during the local bottom.

Nevertheless, the appearance of a bearish order block to the north on the daily chart is not a good sign. Now, $91,000 forms a resistance for BTC. A rejection from this zone and BTC will head towards $85,000 minimum.

Scenarios: Technical Bounce or Capitulation?

The market stands at a crossroads. Two major scenarios are emerging for the coming hours:

• Bullish Scenario (Bounce): Bitcoin manages to defend the $88,000 – $89,000 zone and initiates a technical bounce. The first target would be to reclaim $90,000, then attack the $91,800 resistance. A daily close above this level would invalidate the thesis of a deeper crash.
• Bearish Scenario (Correction): If selling pressure persists and the $87,800 support gives way, the door would open to a more severe correction. Bears could then target the $85,000 zone, a significant liquidity level that hasn’t been tested in several weeks.

The purge of leveraged positions has cleaned up the market, but sentiment remains fragile and many longs are still underwater. Bitcoin’s ability to transform $89,000 into solid support will determine whether we’re witnessing a simple healthy correction in a Bull Run, or the beginning of a more lasting trend reversal.

Related Articles:

• Dogecoin launches its own app: Will DOGE explode?
• Trump Media: Could a crypto airdrop send DJT shares soaring?
• Bitcoin, XRP, and Dogecoin: ChatGPT AI predicts a massive explosion by late 2026