Yeliz Akmaca 
Bitcoin price fell below the $92,000 support level in the early days of the year, reaching the critical $90,000 mark, marking a significant test in technical analysis. This decline paralleled the filling of a year-end gap in the futures market and increased volatility in the market.
21-Day Moving Average and Liquidity
Bitcoin briefly dipped below the 21-day moving average. This move is seen as a normal liquidity-gathering action. Analysts suggest that if the price holds this level, short-term consolidation could complete, restoring investor confidence.
CME Gaps and Short-Term Risks
A second open CME gap still exists around $88,200. Filling this gap could increase short-term price pressure. However, if the price recovers without filling it, this level may serve as a potential bottom in the next cycle, highlighting ongoing risks and uncertainties in the market.
Bitcoin’s approach to the $90,000 support zone indicates a possible decline toward $89,200. Breaking this area could result in a further drop to $86,800, deepening momentum loss. This technical scenario reflects short-term volatility and risk levels.
Position Strategies and Investor Guidance
Traders should monitor short-term breakouts and reversal signals. If the price recovers, long positions can be considered; if support fails, adding short positions may be appropriate. This strategy provides flexibility in risk management, helping investors navigate sudden market swings.
Bitcoin’s current technical outlook shows signs for both short-term fluctuations and potential long-term cycle bottoms. CME gaps and key support levels remain essential reference points for investors. If the remaining CME gap is not filled, these levels may mark the bottom of the next price cycle.
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