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Bitcoin has struggled to break through the $94,000 level and is now attempting to stabilize above the $90,000 mark, a zone that has become critical for short-term structure. While bulls are making an effort to defend recent gains, the broader market context remains fragile, with several risk factors limiting upside conviction. Price action reflects a market caught between relief-driven buying and persistent sell-side pressure near major resistance.
A recent CryptoQuant analysis highlights that Bitcoin is currently testing an important technical and on-chain confluence. On the daily timeframe, BTC has managed a strong rebound from the Point of Control (POC) around $85,000, an area that previously concentrated significant trading volume. This recovery pushed price back into the $92,000–$94,000 supply zone, where sellers have consistently stepped in.
From a momentum perspective, the Relative Strength Index (RSI) suggests that bullish pressure is building, signaling improving short-term sentiment. However, on-chain data paints a more cautious picture. Key flow and positioning metrics indicate that the market may be approaching a zone where distribution risk increases, especially if buyers fail to absorb available supply.
This divergence between improving technical momentum and warning signals from on-chain indicators places Bitcoin at a pivotal moment. Whether BTC can consolidate above $90,000 or faces renewed rejection will likely define the next directional move, making this level critical for traders and investors alike.
Rising Sell-Side Risk at Key Resistance Levels
The report explains that Bitcoin is currently trading just below a major technical resistance block, highlighted as a critical supply zone. Price has entered this area multiple times, but each attempt has lacked the conviction needed for a clean breakout. Historically, when Bitcoin fails to decisively clear such resistance, the market often responds with a liquidity sweep toward lower levels, targeting areas where unfilled demand remains.
On-chain data reinforces this technical caution. An analysis of Binance’s exchange netflow over the past seven days reveals a sharp increase in assets moving onto the exchange. Bitcoin net inflows reached approximately $3.6 billion, while Ethereum saw an additional $1.15 billion. Combined, this represents roughly $4.75 billion in potential sell-side pressure entering centralized venues in a short period.
This creates a clear divergence. While price action suggests an attempt to break higher, the rapid expansion of exchange reserves points to a different dynamic beneath the surface. Large holders and institutions may be positioning to sell into strength or establish short exposure near resistance, rather than supporting a sustained upside move.
The timing is critical. The convergence of heavy inflows with Bitcoin testing the $92,000–$94,000 range skews risk to the downside in the short term. Unless buyers can absorb this supply and secure a strong daily close above $94,000, the probability of a pullback toward the $85,000 Point of Control remains elevated.
Bitcoin Consolidates Below Key Weekly Resistance
From a trend perspective, Bitcoin is still trading below the weekly 50-period moving average, which now acts as a dynamic resistance around the mid-$90,000s. This level has capped upside attempts so far, indicating that bulls have not yet regained full control. At the same time, the weekly 100-period moving average continues to slope upward well below the current price, suggesting that the broader macro trend remains constructive despite the correction.
Price action over the last several weeks shows higher lows forming near the $85,000–$88,000 zone, signaling that buyers are stepping in on dips. Volume has decreased compared to the distribution phase near the highs, which is typical during consolidation periods and suggests selling pressure is easing rather than accelerating.
However, the structure remains fragile. A failure to reclaim and hold above the $95,000–$98,000 range could keep Bitcoin trapped in a broader corrective range. Conversely, a decisive weekly close above the 50-week moving average would improve the technical outlook and increase the probability of a renewed push toward the $105,000–$110,000 area.
Featured image from ChatGPT, chart from TradingView.com
