Bitcoin Price: Air Gap Between $90K-$70K? Risk Of Sharp Decline

Bitcoin (BTC) price remains below the $100,000 milestone, with prospects for a further downside if selling pressure increases.

Cognizant of the broader liquidity challenges in the industry, analysts urge caution, citing the presence of the colloquial “air gap” in the BTC chart.

The air gap, representing an area devoid of buyers waiting to interact with Bitcoin price, exists in the area between $90,000 and $70,000.

This means that if Bitcoin loses the primary support around $91,000, the price could roll over, potentially finding initial support around the $70,000 area.

Weak Support Raises Concerns of a Potential Sell-Off

Currently, Bitcoin price is still around $96,498.98, which is -1.71% down in the last 24 hours.

The cryptocurrency has set the intraday high at $ 98,083.91. It then started a corrective movement, staying slightly above an important level of demand.

– Advertisement –

The key level that can be considered as a primary support level now is located between $91,000 and $93,907.64.

This is the area where buyers usually join the market.

If Bitcoin does not hold this range, the next level of support is a lot lower at around $70,000 due to an air gap.

This is an indication that the Bitcoin price could also drop sharply should sell pressure increase.

Resistance at $97,530 Blocks Upward Momentum

On the flip side, at the topmost, the resistance level of $ 97,530 was a major barrier that barred it from going further.

This level indicates a high realized price distribution. Which means that many of the traders engaged in the price vicinity of this value.

In this regard, the price surge and the ability to overcome this particular barrier may lead to a new round of a bullish trend.

This will bring the price to the level of $100,000 and above. Failure to clear this resistance may cause a downward continuation of the trend.

The supply zone coming close to $104,000 has been another area that has experienced the selling pressure in the past.

The RSI  also shows that Bitcoin’s strength is 43.41 which is low that makes the current situation considered as bearish.

Since then, the RSI has been forming a downward sloping trend line. So the strength of buyers is weakening.

Is Bitcoin Price in an Estimated Bearish or Bullish Run Currently?

There other significant resistances at $96,048 and $98,185 recuperated from the In/Out of the Money analysis.

Many traders bought Bitcoin within this range and are currently in a state of loss, and therefore selling pressure can be expected when it is near such values.

The arrows with red circles point at a possible dumping area where many traders can sell off their inventory to recover their investment.

There is a strong bearish pressure below the $95,941 level which leads to more downside.

In case the Bitcoin finds support below this level it will target towards $93,056 or potentially lower level as the bearish outlook gets confirmed.

However, if $98,185 breaks through, it will go bullish, which may lead to $100,321 – $104,000.