Bitcoin’s start of year (BTC) rally ran into stiff resistance near $93,000, triggering a pullback that has shifted the market’s focus back to key support levels. While the higher-time-frame (HTF) structure still looks fragile, the lower time-frame (LTF) signal suggests bulls may yet have room to regain control if critical levels hold.
Key takeaways:
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Bitcoin rejected at $93,000 for the third time, slipping back toward weekly lows near $89,250.
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Rising open interest during the dip suggests shorts are building positions near $90,000.
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Strong passive bids around $90,000 could act as a springboard, or fail and open the door to the $86,000 to $87,000 range.
Bitcoin bulls need to hold $90,000
After an 8% surge to $93,000, Bitcoin printed a swing failure pattern (SFP) at the same resistance level for the third time. The rejection pushed BTC down to weekly lows near $89,250, reviving the risk of consolidation or bearish continuation in line with the broader HTF trend.
Still, the LTF structure leaves room for a bullish response. Bitcoin is currently testing a key order block between $89,200 and $90,500, the first area of interest where bulls could attempt fresh long entries if momentum flips positive.
Adding to this support, BTC continues to hold above the monthly rolling VWAP (volume-weighted average price), which turned bullish again at the start of 2026.
In the near term, Bitcoin could chop sideways into the weekly close. A decisive bullish engulfing recovery above $91,666 would mark the first confirmation of bullish continuation, forming a higher low on the LTF trend and potentially trapping late shorts positioned between $90,000 and $92,000.
Open interest data strengthens this setup. As BTC dipped from $92,000 to $90,000, open interest climbed sharply, a sign that short positions are building. If BTC can defend $90,000, a short squeeze becomes likely. A strong daily close above $91,700 would be the first signal, opening the path for another test of $93,000.
However, failure to hold above $89,000 would quickly expose internal liquidity between $86,000 and $87,000, giving sellers a clear downside target.
Related: 60K Bitcoin absorbed by accumulators as miners send it to exchanges: Will rally stall?
BTC buyers flood order book with passive bids
Data from CoinGlass shows the aggregated order book liquidity delta flashing strong passive bids around $90,000. Over the past two weeks, similar bid absorption has preceded short-term recoveries, a pattern that could repeat if buyers continue to defend this zone.
That being said, futures trader Byzantine General cautioned that rising open interest cuts both ways. The analyst said,
“Liquidations data suggests that there’s a good amount of vulnerable longs in there. I could see a little bounce here at 90k, but ultimately it makes sense to me that it takes out those local lows around 86k.”
Related: Bitcoin trader maintains $76K BTC price target as 2026 comeback fizzles
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