Bitcoin Price Analysis: How Low Can BTC Go After the Last Rejection of $90,000?

After failing to reclaim key resistance zones, Bitcoin continues to show weakness across multiple time frames. The market remains under pressure as buyers struggle to take firm action, while broader sentiment and derivatives data point to further downside risk in the near term.

Technical analysis

By Shayan

The daily chart

On the daily chart, BTC remains locked within a well-defined descending channel. The recent rejection near the upper limit of the channel, around $90K, confirms continued bearish control. The asset is now hovering around $87,000, with the 200 and 100 day moving averages acting as dynamic resistance just above $100,000.

Since attempts to reclaim the $96,000 to $97,000 supply zone failed, the structure remains bearish unless the price can break and hold above that level. For now, the next major demand zone is around $80,000. Meanwhile, momentum remains weak, with the RSI unable to break above 50, making more downside likely in the near term.

The 4-hour chart

The 4H chart shows a clear break from the rising wedge pattern that had formed in recent weeks. After multiple rejections at the $95,000 resistance zone, BTC finally broke out of the wedge and is now trading below both the wedge support and the short-term range.

The current structure is bearish and any retest of the $88,000-$89,000 zone could act as short-term resistance before further downside continuation. With the RSI also showing a bearish momentum reset and showing no signs of bullish divergence, a decline towards the $80,000 demand zone is the most likely scenario.

Sentiment analysis

Bitcoin open interest

Open Interest continues to decline and is declining from its peak. The chart shows a sharp drop in leverage as the BTC price fell below $90,000, indicating long-term liquidations and a continued reduction in speculative exposure.

This continued decline in Open Interest as the price declines reflects weak bull conviction and a lack of new leveraged long positions entering the market. Historically, a large open interest flush followed by a clean reset is necessary for the price to drop. This has not been seen yet.

Until a sharp liquidation occurs or signs of new accumulation are observed, sentiment remains cautious and the risk of another downturn remains high.