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Crypto Potato 2026-01-04 14:26:49

Bitcoin Price Analysis: What Are BTC’s Next Targets After Reclaiming $90K?

Bitcoin has recently pushed higher after an extended corrective phase, but the broader structure still reflects hesitation rather than a clear trend transition. While the price has shown signs of recovery, momentum remains muted, keeping the market in a fragile equilibrium. Bitcoin Price Analysis: The Daily Chart On the daily timeframe, BTC has registered a bullish breakout above the descending channel that previously defined the corrective structure. This breakout is technically constructive, as it signals a shift away from persistent lower highs and sustained sell-side control. However, the quality of this breakout remains questionable due to the lack of strong bullish momentum and follow-through. The price has moved higher, but candles remain relatively shallow and overlapping, suggesting that buyers are not yet acting with conviction. Bitcoin is now approaching the main resistance zone around the $94K–$96K region, which aligns with a prior high-volume supply area. This level is critical, as it represents the first major test of the bullish breakout. A failure to reclaim and hold above this resistance would increase the risk of a false breakout, potentially pulling the price back into the prior range. For the daily structure to shift decisively bullish, BTC needs sustained acceptance above resistance, supported by volatility expansion and directional momentum. Until then, the breakout should be treated cautiously rather than as confirmation of a new impulsive cycle. BTC/USDT 4-Hour Chart The 4-hour chart highlights the current indecision more clearly. The asset is consolidating within a tightening wedge structure, reflecting compression after the initial rebound. Higher lows are forming gradually, but upside progress remains capped by local resistance, keeping the price locked in a narrow range. This type of structure typically precedes expansion, but direction remains unresolved. The ongoing consolidation suggests that both buyers and sellers are positioning ahead of a decisive move. Without a clean breakout above the wedge resistance, the recent advance remains corrective within the broader context. A sustained break higher, followed by acceptance above local resistance of $95K, would be required to support the case for another bullish cycle. Conversely, failure to resolve higher could result in renewed downside pressure and a return toward the lower demand zones at the $80K range. Until resolution occurs, range-bound and liquidity-driven price action remains the dominant theme. Sentiment Analysis The liquidation heatmap provides valuable context for near-term price behaviour. A clear concentration of liquidation levels has built up below the current price, particularly around the $85K–$87K region, indicating a dense cluster of leveraged long exposure. This liquidity acts as a downside magnet in the event of weakness, as a sharp move lower could trigger cascading liquidations. At the same time, overhead liquidity appears more fragmented, suggesting that upside continuation may require additional buildup before a sustained squeeze can occur. The recent grind higher has already cleared short-term liquidation pockets above with little momentum, reinforcing the idea that current price action lacks strong directional urgency. As long as Bitcoin remains within this liquidity balance, short-term moves are likely to be driven by stop-hunts rather than trend expansion. A decisive breakaway from these liquidation clusters will be necessary to confirm the next meaningful directional move. The post Bitcoin Price Analysis: What Are BTC’s Next Targets After Reclaiming $90K? appeared first on CryptoPotato .

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