Bitcoin Price Analysis: Is BTC in the Calm Before the Storm?

Overview: In this detailed technical and sentiment analysis, Bitcoin remains in a clear consolidation phase rather than showing signs of a directional continuation. According to insights by Mr. Shayan, price action has been defined by a persistent struggle under a descending trendline on the daily timeframe and a dense liquidity cluster just above $90K. This combination has produced muted momentum, with the market reacting to nearby liquidity and structural technical levels rather than trending decisively.

Daily Chart Context: On the daily chart, Bitcoin trades beneath a well-defined descending trendline that has repeatedly acted as dynamic resistance during the recent decline. Each attempt to reclaim higher levels has been capped below this trendline, confirming aggressive seller behavior. The price is consolidating under a key supply zone around the $95K area — an important decision point where previous breakdowns originated. As long as price remains below this supply cluster, upside moves are likely to be corrective rather than impulsive. The primary daily support sits near $80K, a level that has recently absorbed notable sell pressure and served as a temporary base. A decisive daily close below $80K would degrade the market structure and increase the probability of a deeper corrective leg.

4-Hour and Short-Term Structure: Zooming into the 4-hour timeframe, Bitcoin shows a compressed structure following the sharp sell-off from recent highs. A rising corrective pattern formed inside the broader downtrend but has since been violated to the downside. Short-term attempts to push higher have stalled near the $90K region where sellers repeatedly defended rally attempts. The inability to reclaim the descending trendline on this timeframe suggests bullish momentum remains weak. Failure to hold acceptance above the current consolidation range and a loss of acceptance below $85K could accelerate downside toward the daily support zone. Conversely, a clean reclaim and hold above $90K is required to shift short-term momentum and challenge upper resistance clusters.

Liquidity and Sentiment: The 2-week liquidation heatmap highlights a pronounced liquidity cluster just above $90K. This dense concentration of leveraged positions increases the likelihood of price interaction in this region. Rather than implying an immediate breakout, the liquidity cluster often acts as an absorption zone: moves into the cluster can trigger liquidations and forced position closures that allow larger players to absorb liquidity without facilitating a sustained breakout. Until liquidity above $90K is meaningfully cleared and the market demonstrates strong acceptance above that level, Bitcoin remains vulnerable to further consolidation or renewed downside sweeps. Additionally, the presence of untested liquidity below current levels keeps the risk of deeper sweeps toward lower demand zones on the table.

Practical Trading Considerations: Traders should treat the market as range-bound until a decisive structural shift occurs. Key actionable thresholds include a sustained daily close above the descending trendline and acceptance above $95K to open the possibility of trend continuation, while a daily close below $80K would invalidate the current base and increase bears' control. On shorter timeframes, watch for reclaim of $90K to shift short-term bias or clean loss of $85K to accelerate downside. Risk management remains essential given the likely liquidity-driven moves and the potential for sharp but short-lived liquidations.

Source Attribution: Analysis and commentary are derived from research by Mr. Shayan and were originally published on Company CryptoPotato. This synthesis is intended to clarify the technical picture and liquidity dynamics shaping BTC's current price behavior.