Bitcoin (BTC) Price Analysis: Bulls Defend $90K as the Market Gears Up for a Breakout

Coinglass data shows $90,000 as a critical zone for BTC traders. The liquidation map shows bulls are defending this level.

Bitcoin price has seen sharp swings recently, testing the crucial $90,000 support following a wave of selling pressure. The cryptocurrency briefly dipped under $92,000 before making a swift recovery, reclaiming the $100,000 mark. This volatility has been largely influenced by escalating trade tensions between the U.S., China, and Canada, injecting uncertainty into global financial markets.

Now, analysts are debating whether Bitcoin has already reached the top of this cycle or if there’s more to come. Blockchain research firm Lookonchain has examined key on-chain metrics to gauge Bitcoin’s standing in the current bull run. Here’s what they found: Bitcoin hasn’t topped out and could still rally much higher.

Bitcoin’s Upside Potential: Could BTC Reach $250K?

A closely followed long-term indicator, the Bitcoin Rainbow Chart, suggests that BTC still has room to run. Historically, Bitcoin tops out when it enters the “red band” on this chart. As of now, BTC is below that, indicating that more upside is possible. Some analysts believe that if the trend continues, BTC could go past $250,000 this cycle.

The Bitcoin Rainbow Chart suggests BTC still has room to run. Source: Lookochain on X

Another crucial technical indicator, the Relative Strength Index (RSI), also indicates that Bitcoin hasn’t reached its peak yet. In previous cycles, Bitcoin’s RSI went above 90 before a top was confirmed. Currently, the RSI is below 90, suggesting that the rally may not be over yet.

Furthermore, the 200-week Moving Average Heat Map supports the notion that Bitcoin hasn’t topped out. This indicator highlights the areas where major tops tend to form when conditions become overbought.

BTC 200-Week Moving Average Heatmap. Source: Lookonchain on X

According to Lookonchain’s data, BTC is not yet in the overbought zone, indicating that the bull run may have more to go.

MicroStrategy Pauses Bitcoin Accumulation as Market Uncertainties Bite

In other news, MicroStrategy, the largest corporate holder of Bitcoin, has paused buying after 12 weeks of accumulating the cryptocurrency. The company, led by Michael Saylor, now holds 471,107 BTC, valued at around $30 billion.

According to the statement, MicroStrategy didn’t buy any more BTC between January 27 and February 2, 2025, following a $1 billion BTC purchase. While they remain committed to their Bitcoin strategy, this pause has raised questions about whether institutions are reconsidering their accumulation plans given the recent volatility.

However, institutional interest in Bitcoin remains strong, with several publicly listed companies, including Semler Scientific and Rumble, adding BTC to their treasuries. Leading Bitcoin mining company MARA still holds 44,394 BTC as companies increasingly adopt Bitcoin as a hedge against inflation.

Bitcoin Price Analysis: Can BTC Hold Above $100K or Fall to $90K?

After briefly reclaiming the $100,000 level, Bitcoin is struggling to maintain its bullish momentum. At the time of writing, BTC is hovering around $99,500, battling to stay above the 50-day Simple Moving Average (SMA).

BTC/USD daily chart. Source: TradingView

The former U.S. President Donald Trump’s tariff announcements further shook market sentiment, sending shockwaves through global equities and cryptocurrency markets. This triggered a rapid sell-off, pushing Bitcoin to an intraday low of $91,274, where institutional buyers stepped in to prevent a further decline.

Key support and resistance levels for Bitcoin include strong buyer demand at $90,000, where over $1.8 billion in leveraged long positions are concentrated.Resistance between $102,000 and $107,000, where sellers are capping upside movements.

The technical indicators present mixed signals: The Moving Average Convergence Divergence (MACD) remains in bearish territory, suggesting that BTC may still face downward pressure. However, institutional buying activity at $90K could provide strong support and prevent a deeper correction.

If sellers regain control, Bitcoin could test the $95,000 support level. A breakdown below this zone might expose BTC to a deeper drop toward $90,000, where significant institutional demand is concentrated.

On the other hand, a strong bounce from current levels could push BTC toward the $106,000-$110,000 resistance zone. A decisive breakout above $110K could signal the beginning of another major rally, potentially sending Bitcoin toward $115,000 and beyond.

Bulls Defend $90K as Bitcoin Gears Up for a Breakout