After failing to hold the $94,000 area, Bitcoin staged a significant correction, falling towards the $88,500-$89,000 demand area after breaking above the recent FVG area. The move reflects that buyers are still there, but they are not powerful enough to change the current structure. The formation of lower highs and new lows confirms the start of a short-term downtrend, while the red Ichimoku cloud forms a strong resistance density between $90,500 and $92,000.

Buying volumes appear to be much weaker than sellers, indicating that sellers are in control. At the economic level, the rise in the U.S. dollar index and U.S. bond yields is increasing pressure on digital assets. The wait for non-farm payrolls and personal consumption expenditures data also prompted traders to remain cautious, a period when Bitcoin tends to see minor pullbacks before major news releases.

Source link