Bitcoin price recovery could be capped at $90K — Here’s why

Bitcoin's Q2 started positively after February and March drawdowns, with April showing a 3.77% return. While new yearly lows were hit near $74,500, Bitcoin is currently closer to $90,000. A breakout in Bitcoin's higher timeframe market structure is fueling bullish optimism. However, factors may limit gains, potentially capping the price around $90,000. A cooldown in the futures market and a decrease in the leverage ratio are positive long-term indicators, though derivatives traders currently dominate. High net taker volume suggests aggressive buying, historically correlating with price rallies. While a leverage-driven pump is observed, retail or spot trader involvement remains low. Bitcoin's apparent demand is recovering but isn't yet positive, suggesting potential sideways movement. Significant liquidation clusters between $80,000 and $90,000 could trigger squeezes, impacting price action. Bitcoin might target these clusters before a major directional move. The analysis does not constitute investment advice; readers should conduct their own research.