Bitcoin is showing signs of potential weakness, but is this the beginning of a larger correction, or just a short-term shakeout?
Key Observations:
Price Action: BTC is currently trading around $88,048, down 0.41%, after failing to sustain momentum above $88,752.
Support & Resistance: Key levels to watch are $88,176 (resistance) and $87,721 (support). A breakdown below this range could trigger more selling pressure.
Long/Short Ratio: The data shows a decrease in long positions, meaning traders are leaning bearish. This could indicate further downside pressure.
Taker Buy/Sell Volume: Selling volume is dominant, suggesting aggressive shorting.
Bearish Case:
If BTC loses $87,721, it could dip further towards $86,000 - $85,500 as liquidity gets taken out.
RSI is showing some cooling off, signaling momentum loss.
Funding rates and market sentiment indicate potential liquidation of over-leveraged long positions.
Fakeout Scenario:
If BTC quickly reclaims $88,200+, this move could be a bear trap, leading to another push above $89,000-$90,000.
A bounce from the 50 EMA on the 15m chart would confirm a fakeout and continuation of the bullish trend.
Conclusion:
Break below $87,721 → Short-term bearish with potential downside.
