Bitcoin has returned to the $91,000 level, but there are no reasons for celebration. Considering the technical picture and the sluggish purchasing activity from major players, any return to bearish market conditions could lead to another significant sell-off of BTC, opening the way down to the $85,000 and $80,000 levels.

Meanwhile, crypto market ambassador Arthur Hayes stated in his new essay that the decline in BTC is not due to fundamental issues but rather to a reduction in liquidity. He believes that the weakening inflows into spot ETFs and Direct Asset Trading (DAT) are contributing to the correction in the cryptocurrency market. However, with the return of liquidity and the recovery of the US stock market, Bitcoin could rise to $250,000 by the end of the year.

Hayes points out that recent economic data—particularly the lack of it—and persistently high inflation are putting pressure on the US Federal Reserve. This, in turn, forces the regulator to maintain a tight monetary policy, which negatively affects risk assets, including cryptocurrencies. The reduction in liquidity, driven by asset sales to cover losses in other markets, adds further pressure on BTC. Nonetheless, Hayes remains optimistic about Bitcoin's long-term outlook. He believes that once the Fed eases its grip and returns to a more accommodating monetary policy, liquidity will return to the market, pushing BTC prices higher. He also emphasizes that the recovery of the US stock market will play a crucial role in shaping the sentiments of crypto investors.

Additionally, Hayes highlights the importance of institutional buyers. Once inflows into spot ETFs resume, a strong rebound in the cryptocurrency market can be expected, especially since there will undoubtedly be buyers looking to seize opportunities at more attractive prices.

Trading recommendations:

Regarding the technical picture for Bitcoin, buyers are currently targeting a return to the $92,900 level, which opens a direct path to $95,900. From there, it is only a short step to $99,400. The furthest target is around $102,400. Surpassing this level would signify attempts to return to a bullish market. If Bitcoin declines, buyers are expected at the $89,200 level. A move below this area could quickly push BTC down to around $86,500, with the most distant target at $83,900.

For Ethereum, clear consolidation above the $3,069 level opens the path to $3,163. The furthest objective is around $3,256. Breaking above this level would indicate a strengthening bull market and increased buyer interest. If Ethereum falls, buyers are expected at the $2,920 level. A drop below this area could swiftly bring ETH down to around $2,756, with the most distant support at $2,592.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

Typically, a crossover or price test of these moving averages either halts market momentum or sets a new directional impulse.