$BTC just delivered a brutal reality check. After a sharp rejection at the 98K zone, price slid hard and is now hovering around $90K, bouncing cleanly from $87K. Traders are split — was this a healthy reset before continuation, or is one more dip still loading? Let’s simplify what really matters.
Market Update:
The rejection at $98K wasn’t accidental. That level acted as a textbook bull trap, luring late longs chasing the 99K+ narrative. Once $90K broke, it flipped from support into resistance. Until Bitcoin reclaims $90K on higher timeframes, short-term control remains with sellers. A solid 4H close above $90K is the first real sign momentum is shifting back to bulls.
Why Did Bitcoin Drop So Fast?
This wasn’t just charts at work. Rising geopolitical tensions and fresh tariff headlines injected fear across global risk markets. Algorithms sold first, retail followed. Still, the strong bounce from $87K suggests the market sees this as temporary macro noise — not a structural breakdown.
On-Chain News:
This move did what it needed to do: flush leverage. The 6 thousand in long positions were wiped out in a single session, resetting open interest and shaking out weak hands. While over-leveraged traders were forced out, spot buyers stepped in aggressively near $87K. Smart money buys fear — and that’s exactly what happened.
What Happens Next? 🤔
Two paths are now clearly defined: ...
Bullish Case & Outflow:
A clean reclaim and 4H close above $90K flips the level back into support. With thin resistance overhead, price could accelerate quickly toward $94K.
Bearish Case & Outflow:
If $90K keeps rejecting price, expect another test of the $87K demand zone. That level is critical for preserving the broader bullish structure.
My Suggestion for you:
Leverage is cleared. Fear headlines are priced in. Now price, not prediction, will lead. Don’t chase moves — wait for confirmation. Patience here will outperform guessing.
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And if you have any questions fell free to ask me in comments below 👇