Bitcoin Bounces Around Critical Levels as $90K Becomes Key Battleground

Bitcoin’s early-year momentum hit a wall as the cryptocurrency struggled to hold gains above $93,000. The repeated rejection at this price point—now marking the third failed attempt—has sent BTC retreating toward weekly lows near $89,250, signaling a shift in market dynamics that traders are closely monitoring.

Where the Real Support Lies

The current price action around $91.92K has traders focused squarely on what happens next. Between $89,200 and $90,500, there’s an important order block that’s emerged as the pivotal zone—this is where buyers and sellers are battling for control. Data from major exchanges shows substantial passive buying interest accumulating around the $90,000 level, a phenomenon that typically precedes short-term bounces.

The monthly volume-weighted average price (VWAP) remains bullish and is supporting Bitcoin from below, suggesting the infrastructure for a recovery still exists. However, the broader daily structure tells a different story: the repeated failure to break $93,000 has created what technicians call a swing failure pattern, and this is weighing on sentiment.

The Short Interest Story

What’s happening beneath the surface might be just as important as price action. As Bitcoin dipped from $92,000 down toward $90,000, open interest spiked sharply—traders are actively building short positions in this zone. This creates an interesting dynamic: if buyers can successfully defend the $90,000 order block, a squeeze of these underwater shorts becomes highly probable.

The setup for this would be straightforward: a strong daily close above $91,700 would signal the first confirmation of recovery momentum, potentially trapping late shorts and setting up another test of the $93,000 resistance. Once that level breaks decisively, the path toward higher levels opens up.

The Downside Scenario Nobody Wants

But here’s the critical caveat: liquidation patterns suggest plenty of long positions are vulnerable at current levels. If Bitcoin fails to hold above $89,000, it would quickly expose liquidity pockets between $86,000 and $87,000—these would become the sellers’ next target in a bearish scenario.

In the near term, consolidation around current levels looks probable into the weekly close. The outcome depends entirely on whether the order block around $90,000 holds firm and ignites fresh buying, or if it crumbles under sustained selling pressure. Either way, this zone has become the inflection point for Bitcoin’s next major move.