3 Reasons Why Bitcoin Price Can't Take Out the $90K Resistance Level

Bitcoin, the king of cryptocurrencies, has had a turbulent ride recently. While many anticipated a swift climb past the coveted $90,000 mark, the digital asset has faced significant headwinds, struggling to even consistently hold above $88,000. This begs the question: what's holding Bitcoin back? Why can't it break through this seemingly impenetrable barrier? The failure to conquer the $90,000 resistance isn't due to just one isolated factor; instead, it's a confluence of several forces acting in concert. As the end of the week looms closer, the odds of revisiting the $90,000 threshold before the first quarter concludes appear to be diminishing, adding fuel to the fire of market uncertainty. To truly understand Bitcoin's current predicament, we need to delve into the underlying market dynamics and explore the key reasons preventing it from achieving this crucial milestone. From shifting market structures to dwindling liquidity and the absence of fresh capital influx, let's dissect the challenges preventing Bitcoin from reaching its next significant price target.

Since reaching a weekly high of $88,752 on March 24, Bitcoin (BTC) price has formed a series of lower highs and lower lows in the 1-hour time frame chart. As the end of the week approaches, Bitcoin price has failed to break above the $88,000 resistance, reducing the chance for a $90,000 retest before the [ ]

1. A Top-Heavy Market Structure: Too Many Sellers at the Top

One of the primary reasons Bitcoin is struggling to break above $90,000 is the top-heavy market structure. This essentially means there are a disproportionately large number of sellers positioned at or near this price level. These sellers, often large institutional investors or early adopters looking to take profits, create significant selling pressure that overwhelms buying demand. Every time Bitcoin approaches $90,000, these sellers flood the market with their holdings, pushing the price back down.

A top-heavy market, decreasing liquidity, and the absence of new buyers are keeping Bitcoin price pinned below $90,000. Since reaching a weekly high of $88,752 on March 24, Bitcoin (BTC) price has formed a series of lower highs and lower lows in the 1-hour time frame chart.

Imagine a dam with a very thick top. The water (buying pressure) needs to be strong enough to overflow that top (selling pressure) to move higher. In Bitcoin's case, the ""top"" at $90,000 is proving to be a very strong barrier.

Three primary reasons have emerged to explain Bitcoin's current struggle at the $90,000 resistance level: a top-heavy market structure, decreasing liquidity, and the absence of new buyers.

This situation is further exacerbated by:

• Profit-taking: Investors who bought Bitcoin at lower prices are eager to secure their gains as the price approaches $90,000.
• Resistance Level Psychology: Traders often use round numbers like $90,000 as psychological resistance levels, placing sell orders at these points, anticipating a price reversal.
• Potential for Correction: Some investors fear a market correction after a substantial price increase and choose to sell near resistance levels to avoid potential losses.

The result is a constant downward pressure that prevents Bitcoin from sustaining any upward momentum and ultimately hinders its ability to break through the $90,000 resistance.

Short-Term Holders Contributing to the Problem

Adding to the top-heavy market is the behavior of short-term holders (STHs). These are investors who have held Bitcoin for a relatively short period, typically less than a few months. When the price of Bitcoin stagnates or declines, STHs are more likely to sell their holdings at a loss, further intensifying selling pressure.

According to recent data, a significant amount of Bitcoin held by STHs is currently underwater. This means they bought Bitcoin at higher prices and are now facing losses. As a result, they are more inclined to cut their losses and sell, contributing to the overall selling pressure and preventing Bitcoin from breaking through resistance.

Specifically, reports indicate that 3.4 million BTC held by STHs are now in loss, marking the highest amount since July 2025. This overwhelming level of short-term holder losses directly correlates with the persistent downward pressure hindering Bitcoin's upward trajectory.

2. Decreasing Liquidity: Thin Order Books Make Price Movement Difficult

Another significant factor preventing Bitcoin from breaking the $90,000 resistance is decreasing liquidity. Liquidity refers to the ease with which an asset can be bought or sold without significantly impacting its price. When liquidity is high, large buy or sell orders can be executed without causing major price swings. Conversely, when liquidity is low, even relatively small orders can have a significant impact on price.

In the case of Bitcoin, decreasing liquidity means there are fewer buyers and sellers actively participating in the market. This results in thin order books, where there are fewer orders waiting to be filled at different price levels. When liquidity is low, any significant selling pressure can quickly drive the price down, while significant buying pressure is required to push the price up.

Several factors can contribute to decreasing liquidity:

• Market Uncertainty: When investors are uncertain about the future direction of the market, they may become hesitant to trade, leading to lower liquidity.
• Regulatory Concerns: Regulatory uncertainty surrounding cryptocurrencies can also discourage institutional investors and traders from participating in the market, reducing liquidity.
• Alternative Investments: The emergence of other attractive investment opportunities, such as stocks or other cryptocurrencies, can divert capital away from Bitcoin, leading to lower liquidity.

The lack of liquidity makes it difficult for Bitcoin to absorb selling pressure and sustain upward momentum, ultimately preventing it from breaking through the $90,000 resistance.

How Liquidity Impacts Price Action

Think of liquidity as the depth of a swimming pool. A deep pool (high liquidity) can absorb a lot of splashing without much disruption. A shallow pool (low liquidity) will overflow with even a small splash. With low liquidity, even moderately sized sell orders can cause a rapid price drop, while large buy orders are needed to move the price significantly higher.

This heightened sensitivity to trading volume makes Bitcoin more vulnerable to price manipulation and less likely to sustain a breakout above the $90,000 resistance.

3. Absence of New Buyers: Stale Capital Inflow Stunts Growth

The third critical reason Bitcoin is struggling to surpass the $90,000 level is the absence of new buyers. While existing investors may be holding onto their Bitcoin or even buying small amounts, a significant influx of new capital is needed to drive the price significantly higher.

New buyers bring fresh demand to the market, creating the necessary buying pressure to overcome selling pressure and push the price beyond resistance levels. Without a steady stream of new investors, Bitcoin's price is likely to stagnate or even decline.

Several factors can contribute to the lack of new buyers:

• High Price Barrier: The current price of Bitcoin, even below $90,000, can be a significant barrier to entry for new investors, especially those with limited capital.
• Fear of Missing Out (FOMO) Fatigue: The initial FOMO surrounding Bitcoin has subsided, and many potential investors may feel they have already missed the boat.
• Negative News and Sentiment: Negative news headlines, such as regulatory crackdowns or security breaches, can discourage new investors from entering the market.
• Rising Bearish Sentiment: Gloomy macroeconomic factors and negative analyses from experts also push new investors away from purchasing BTC.

To break through the $90,000 resistance and continue its upward trajectory, Bitcoin needs to attract a new wave of investors who are willing to buy at current prices and drive demand higher.

What Can Attract New Buyers?

Attracting new buyers requires a combination of factors, including:

1. Positive News and Developments: Positive news about Bitcoin's adoption, technological advancements, or regulatory clarity can attract new investors.
2. Increased Institutional Adoption: Continued adoption of Bitcoin by institutional investors, such as hedge funds, pension funds, and corporations, can boost confidence and attract new retail investors.
3. Stronger Market Sentiment: A shift in market sentiment from bearish to bullish can encourage new investors to enter the market.
4. Simplified Investment Options: Making it easier for new investors to buy and store Bitcoin through user-friendly platforms and regulated exchanges can lower the barrier to entry.

Technical Analysis and Potential Downtrend

Beyond the fundamental reasons, technical analysis also suggests potential further declines. Since reaching a weekly high of $88,752 on March 24, Bitcoin's price has formed a series of lower highs and lower lows in the 1-hour time frame chart. This indicates a weakening upward trend and increasing selling pressure.

Furthermore, Bitcoin price has dropped below the 38.2% Fibonacci Retracement level. If the price crashes below last week's low of $78,200, which is also the 50% retracement level, it may trigger more downtrend towards the 61.8% retracement level at $71,500. This price is within the $70,000 and $90,000 range previously projected by some analysts.

These technical indicators suggest that Bitcoin may face further challenges in the short term and may need to consolidate before attempting another breakout above the $90,000 resistance.

Addressing Common Questions

Will Bitcoin Ever Break $90,000?

While there are challenges preventing Bitcoin from breaking $90,000 in the short term, the long-term outlook remains positive for many analysts. Bitcoin's limited supply, increasing adoption, and potential as a store of value suggest that it could eventually surpass this level. However, the timing of such a breakout is uncertain and depends on various factors, including market sentiment, regulatory developments, and macroeconomic conditions.

What is the 25-Delta Risk Reversal?

The 25-delta risk reversal measures the volatility premium of out-of-the-money put options compared to out-of-the-money call options. A negative value suggests that investors are more willing to pay for protection against downside risk (puts) than upside potential (calls), indicating bearish sentiment. This is another indicator suggesting potential further price declines for Bitcoin.

What Can I Do as an Investor?

As an investor, it's crucial to remain informed, manage risk effectively, and avoid making impulsive decisions based on short-term price fluctuations. Consider these strategies:

• Diversify your portfolio: Don't put all your eggs in one basket. Diversify your investments across different asset classes to mitigate risk.
• Invest for the long term: Bitcoin is a volatile asset, and short-term price swings are common. Focus on the long-term potential of Bitcoin rather than trying to time the market.
• Do your own research: Don't rely solely on the opinions of others. Conduct your own research and analysis to make informed investment decisions.
• Use stop-loss orders: Protect your investments by using stop-loss orders to automatically sell your Bitcoin if the price falls below a certain level.

Conclusion: Navigating the Bitcoin Landscape

In conclusion, Bitcoin's inability to overcome the $90,000 resistance level is a multifaceted issue stemming from a top-heavy market structure, decreasing liquidity, and the absence of new buyers. Short-term holder selling pressure, negative technical indicators, and general market uncertainty further compound these challenges. While the long-term outlook for Bitcoin remains positive, potential investors should exercise caution and consider the risks involved before investing. Staying informed, managing risk, and adopting a long-term perspective are crucial for navigating the volatile cryptocurrency market. Bitcoin's price action has been forming lower highs and lower lows since hitting $88,752 on March 24. It is important to watch key Fibonacci retracement levels for potential support and resistance. Whether or not Bitcoin will conquer the $90,000 resistance remains to be seen; in the meantime, cautious and informed decision-making is key for all investors. The next few weeks will be crucial in determining whether or not Bitcoin can reverse its current trend and embark on a sustained upward trajectory.

Key Takeaways:

• A top-heavy market structure with significant selling pressure at $90,000 is hindering Bitcoin's upward movement.
• Decreasing liquidity is making Bitcoin more vulnerable to price swings and hindering its ability to absorb selling pressure.
• The absence of new buyers is preventing Bitcoin from generating the necessary demand to break through resistance.
• Technical indicators suggest potential further declines in the short term.
• Investors should remain informed, manage risk effectively, and adopt a long-term perspective.

What are your thoughts on Bitcoin's future price action? Let us know in the comments below!