BTC faces rising sales pressure as it retains a $95,000 resistance

Bitcoin’s recent execution appears to be losing steam as price action encounters a critical range of resistance over a $95,000 psychological barrier. The market is currently showing signs of fatigue, suggesting that the correction stage may be on the horizon before the new, history-highest potential surge.

Technical Analysis

Daily Charts

After staging strong breakouts last week on both the 100-day and 200-day moving averages, Bitcoin has surged towards the key $95K level. This zone represents a very important confluence of technical resistance not only due to the psychological relevance of round numbers, but also because it coincides with previous major swing highs and order block zones.

But as prices approached this threshold, bullish momentum faded. The chart now reflects the typical signal period of low volatility, lateral integration, and indecisiveness at strong resistance levels.

The RSI also enters the acquired territory, indicating that buyers may be exhausted in the short term. These factors are directed towards potential pullbacks that are likely to head towards the $90,000 zone where 100 and 200-day MAs are currently serving as dynamic support.

The ultimate successful breakout clears Bitcoin’s path to previous all-time highs at $109,000, reestablishing bullish control over the market.

4-hour chart

Zoom in to the 4-hour time frame and the technical photos further support the possibility of short-term fixes. After an impulsive surge, the BTC rally was held to the $95,000 cap at its previous swing high, forming a textbook three-drive pattern.

Furthermore, the bearish divergence between price action and RSI suggests a weakening of momentum. Despite the highs on the charts, the RSI is unable to follow suits, suggesting a slower purchase intensity. This difference, coupled with the presence of a heavy supply of around $95,000, suggests that Bitcoin could enter the corrective phase.

The most likely scenario in the short term includes a $90,000 regional setback. This now represents a structurally important support zone. The Bulls effectively defend this level and can establish a strong foundation for new bullish momentum targeting breakouts above $95,000.

On-Chain Analysis

Analyzing recent behaviours in funding rates provides important insight into the sentiment driving Bitcoin price action. During the long-term revisions from March to October 2024, Bitcoin funding rates have repeatedly changed negatively, even during short-lived rallies.

This trend revealed the active presence of short sellers and a clear lack of confidence among market participants.

A surprisingly similar pattern is now appearing. The funding rate has once again reversed negatively as Bitcoin has recently gathered and approached a key resistance zone of $95,000. This difference between rising prices and lower funding rates suggests that the majority of the market is:

Engaged in hedging potential negative risks, reversing bearish in resistance, or distribution and selling strength to manage exposure.

This behavioral pattern often precedes short-term pullbacks, as excessive attention or paradoxical positioning can temporarily shift the balance of demand supply. Given this background, it seems likely that a short-term bearish retracement is a good thing. If historical patterns apply, this retracement could ultimately become healthy with a wider bullish structure.