Bitcoin Rally Forecast: $93K Key Level Before Final Wave to $121K

Bitcoin price trajectory faces critical points, with analyst Mikybull Crypto targeting $93K and $121K as resistance levels. Leveraged positions also face liquidation risks around $77,250 for longs and $85,000 for shorts, driving market caution and interest.

Crypto analyst Mikybull Crypto provides a technical analysis of Bitcoin’s price trajectory. He identified two key levels of interest: $93,000 and $121,000. This analysis sees Bitcoin reaching $93,000 as a very important resistance level.

When this level is hit, the analyst said he sees a potential pullback. He also sees a consolidation phase before the market stabilizes for the next leg up.

The chart follows an Elliott Wave structure ending with the completion of the fifth wave in a sequence. The combined $93,000 pullback could be an end for cashing in on the final phase of this fifth wave into the $121,000 range.

These targets are marked on the chart with the corresponding Fibonacci extension levels at 1.618 at $93,940 and 2.272 at $121,715. The areas act as hypothetical price targets based on historical prices. They can be used by traders as potential extrapolation figures as to where the prices will escalate.

Leveraged BTC Positions Face Major Liquidation Risk at Key Levels

If BTC’s price falls to $77,250, almost $1 billion in leveraged long positions. These are at risk of liquidation, according to Coinglass data. This level could be a tipping point though, and a price dip would cause many leveraged positions to close, leading to a liquidation cascade.

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The chart illustrates leverage levels with distinct colors: 10x, blue, 25x, yellow, 50x, red, and 100x. The heavy grouping of red around $77,250 is pointing at an extremely high number of 100x leveraged positions in this zone. The said area is very susceptible to price drops.

A very slight decline can cause large liquidations. This level also spikes the cumulative leverage volume curve. It furthers the point that almost $1 billion in long positions could be at risk.

At this critical liquidation threshold, BTC trades above this currently at a small buffer of $81,386. But this proximity portends a precarious situation, as any large fall in price could get close to the $77,250 mark and would trigger widespread liquidations.

However, a dramatic short liquidation could take place if Bitcoin’s value reaches $85,000. It reveals an estimated $1.29B of short positions at risk. This is the main level of resistance for BTC shorts. A price surge above it could spark off forced buybacks, amplifying upward momentum.

Indicated here by a steep red curve is the cumulative short liquidation volume, which increases strongly around $85,000, marking a large number of leveraged short participants prone to a price rise.

At Bitcoin’s present price level, short sellers risk huge losses when the trigger turns red. A move to $85,000 could kick sell orders loose to the point where a squeeze kicks in, sending prices skyward.

Bitcoin Market Shows Bullish Momentum, Funding Rates Increase

The recent increase in bullish activity has been translating into funding rates, which are a mirror of sentiment in the derivatives market.

A positive sign for the markets is that higher funding rates indicate traders are willing to pay for the cost to maintain a long position. Bullish sentiment is currently on the rise, but it’s nowhere near the level of the rally seen in Cluster #2 back in March 2024.

There are two clusters: Cluster #1 comes earlier with a mild rise in the bullish activity, while Cluster #2, which occurred in March 2024, displays a sharp peak in the funding rates as a sign of an extremely bullish sentiment and momentum.

In comparison, with Bitcoin’s price moving up toward $80.9K, the current period exhibits a growth in the trend of positive funding rates, indicating a rising trend of positive funding rates of bullish positioning.