$BTC faced a strong rejection from the $98K zone and is now hovering near $90K after bouncing off $87K. This move has split the market — was it a healthy correction, or is another leg down still ahead? Let’s break it down simply.
Market Structure & Price Action
The rejection at $98K was no coincidence. That zone acted as a classic bull trap, pulling in late longs expecting a quick push to $100K. Once BTC lost $90K, former support flipped into resistance. As long as price remains below $90K on higher timeframes, short-term control stays with the bears. A solid 4H close back above $90K is needed to shift momentum back to the upside.
Why Did Bitcoin Drop?
This move wasn’t purely technical. Rising geopolitical tensions and fresh tariff headlines sparked uncertainty across risk assets. Algorithms reacted first, followed by emotional retail selling. Despite the negative news, the strong bounce from $87K suggests the market is treating this as short-term macro noise, not a structural breakdown.
On-Chain Reality Check
The pullback cleared excess leverage. More than $600M in long positions were liquidated in a single day, resetting open interest and removing weak hands. While leveraged traders were forced out, spot buyers stepped in aggressively around $87K — smart money buying fear.
What’s Next?
Two clear scenarios are in play:
Bullish Case
A confirmed reclaim with a strong 4H close above $90K would signal renewed strength. If buyers flip this level back into support, BTC could move quickly toward $94K due to thin resistance above.
Bearish Case
Continued rejection at $90K would likely push price back to retest the $87K demand zone. This level remains crucial for maintaining the broader bullish structure.
Final Thoughts
Leverage has been flushed. Fear-driven news is largely priced in. Now the market waits for confirmation. Don’t chase moves — let price confirm direction. Patience here will outperform prediction.
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