Bitcoin is testing key resistance zones between $88,000 and $91,700, according to Cryptocurrency Analytics company Makrovision.
The company suggests that the market has yet to decide whether Bitcoin will break out of these levels or be rejected.
Makrovision also raises broader questions about Bitcoin’s position in the overall market cycle. “Are we still in a bull market or have we been in the transition phase?” the company asked in its latest market update. Its main report examines macroeconomic correlations, historical patterns and potential scenarios between Bitcoin and the broader cryptocurrency market.
Meanwhile, another analytics company, Alphractal, noted that there had been a major change in market positioning last week. According to their analysis, Bitcoin saw a rise in long positions, especially when it first beat $88,000. The best trading activity and open interest were observed at $84,000, but a price drop below this level is thought to be possible to endanger long positions. If Bitcoin falls below this critical support, traders who enter short positions above $88,000 can earn a profit.
*This is not investment advice.
