Bitcoin’s Battle for 90K: Why 80K Support Could Define Its Future

• Bitcoin’s open interest drop signals weakening market sentiment and downside risks.
• Glassnode’s “Death Cross” suggests continued bearish momentum in the coming months.

Bitcoin is having difficulty breaking above the $90K level, which has created uncertainty about its short-term direction. Recently, Bitcoin’s open interest dropped below $50 billion, signaling potential weakness in market sentiment. Traders are closely monitoring the $80K level, which has become a critical support point. If Bitcoin drops below $80K with significant volume, the price could fall to $64K to $65K. At the time of writing, Bitcoin’s price stood at $81,919.28, marking a 4% decline in the last 24 hours.

Bitcoin’s Open Interest and Market Sentiment

Bitcoin’s open interest, representing the total value of outstanding derivative contracts, has fallen below $50 billion. This drop points to weakening confidence among market participants, with many pulling back due to the uncertain price outlook. Joao Wedson, a crypto analyst, noted that Bitcoin’s failure to break above $90K could trigger further downside. 

He emphasized that a price breakout above $90K is unlikely in the near term due to strong resistance at this level. Aggregated liquidation levels from various exchanges compound the decline in open interest, which has concentrated around $80K. If Bitcoin fails to maintain this key support, Wedson believes it could descend into the $64K to $65K range, a level that may serve as a support zone before a potential recovery.

Glassnode’s Death Cross and Bearish Indicators

Adding further concern, Glassnode has identified an on-chain analog to the “Death Cross” for Bitcoin. In this scenario, the 30-day volume-weighted price of Bitcoin has crossed below the 180-day average, signaling a loss of momentum. Such patterns have been followed by extended periods of bearish trends, typically lasting 3 to 6 months. 

Source: Glassnode

Glassnode’s analysis, which tracks Bitcoin’s realized price by inter-cycle cohort age, suggests that the recent dip below the 180-day average could lead to continued price declines. Market participants are now cautioned to prepare for bearish movements, as the historical trend could repeat itself.

Bitcoin’s Recent Breakdown and Price Action

Swallow Academy’s recent study shows that Bitcoin has experienced a sharp breakdown, dropping by $6,000. This decline is attributed to external market factors, including the influence of Trump’s recent tariffs. The 4-hour chart shows key support and resistance levels, with a target range between $70K and $75K for further declines.

Image Source: TradingView

The RSI indicator suggests that the market is oversold, hinting at the potential for continued downward pressure. The analysis anticipates a further drop in Bitcoin’s price, with resistance above $86K and support at $70K. This analysis aligns with the growing bearish sentiment surrounding Bitcoin’s price action and could indicate a more significant correction in the coming days.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.