Following the opening of the US markets, Bitcoin 
$91,967 experienced a dramatic surge to $90,000 before wiping out the gains within about an hour. This rapid rise and subsequent fall led to $237 million in liquidations over the past four hours, accounting for approximately 70% of the day’s total liquidations. So, what are analysts currently forecasting?
Bitcoin Volatility
Without any supportive news flow, we noted the price’s liquidity-targeted sudden increase an hour earlier. Given tomorrow’s inflation report and the interest rate decision on Friday, it was clear that this was a risky rise. Bitcoin’s return to its starting point within an hour proved that the move was a trap, not a rally.
Prior to this trap, Poppe had written about Bitcoin’s downward trend, which was concerning coming from someone who constantly expects an uptrend. The analyst stated they wouldn’t be convinced of upward momentum without a clear break above $88,000 and anticipated testing the $83,000 and $80,000 levels. Echoing the risks mentioned since last week, the analyst is now embracing the bottom tests.
Analyst Forecasts
When the weekly RSI and MACD signaled a downturn, Bitcoin was above $120,000, and Roman Trading’s warnings of decline proved accurate today. However, Lark Davis warned that the opposite might now occur at this stage.
“Bitcoin’s weekly RSI recently reached the most oversold levels:
– End of the 2018-2019 bear market
– March’s COVID crash
– End of the 2022 bear market
I’m not saying the bottom is near. Definitely not.
We could always drop another 40%; you never know. In 2018, when Bitcoin was this oversold, it dropped another 49%. In 2022, it fell another 58%. The formation of these bottom levels can take much longer and bring much more pain than you anticipate.”
According to the graph shared by CryptoBullet, with continuous closures above $85,000, we might experience a new upward attempt reaching $108,000. Afterward, we could witness the true cycle bottom.
Efloud anticipated a short-term fake rise, viewing it as a selling opportunity and adjusted his stop price to the entry level. Possible short-term rebounds around $85,390 could be considered. However, given the adverse news flow for cryptocurrencies in the coming two days, these attempts may also end in failure.
