Crypto traders are closely monitoring Bitcoin’s performance as it attempts to build upon yesterday’s gains. Despite a strong start to the week with the strongest institutional ETF inflows since January and a broader upbeat mood, crypto markets are poised for a mixed opening on Tuesday.

Bitcoin (BTC) traders are closely monitoring a key level as the crypto attempts to build upon yesterday’s gains. The world’s largest cryptocurrency slipped back below the 90-day Volume Weighted Average Price (VWAP) on Tuesday, setting the stage for a potential move lower, according to trader ElonMoney.

ElonMoney: Bitcoin Could Slip Back Toward 7D VWAP

If Bitcoin can’t hold above 91,200 and drops back below the 90D VWAP, we’re heading back down to test support at the 7D VWAP around 85,500. pic.twitter.com/r5e6031tRI

A slip below this level could open the door for a move toward the seven-day VWAP, which is currently around $85,500.

Trader: Top

A crypto trader is highlighting a key zone where he sees resistance emerging for Bitcoin.

Trader Points Out Potential Bitcoin Resistance

Crypto trader Crypto Chase says that he sees around $93,500 as a “potential distribution zone.”

He notes that the recent sharp rally lacked liquidity sweeps or meaningful retests. This suggests that the upside may be limited from here.

“Announced move with no liquidity sweeps or anything. Just a monotonic move up. Usually, when you get monotonic moves like that, it’s a setup for a monotonic move back down.”

He remains cautious, flagging the risk of a sudden reversal.

“Be wary of a sudden reversal from here. A lot of the time when you get a move that’s only up, you get an imbalance that has to be unwound with a move that’s only down.”

He adds that he’s seen this pattern play out frequently in past cycles.

Trader: Classic Bitcoin Pattern

Analyst Benjamin Cowen says that a classic Bitcoin pattern is playing out around the key moving average crosses.

This saw a dump into the cross, followed by a countertrend rally once it completes.

The familiar setup often serves as a shakeout before a short-term bounce to trap late participant.

On-chain data shows that demand for Bitcoin continues to weaken, although it has slowed its decline.

CryptoQuant: Bitcoin Demand Momentum Hits Most Negative Level Since October 24

On-chain analytics firm CryptoQuant says that demand momentum has now reached its most negative level since October 2024.

This lack of demand momentum could make it difficult for Bitcoin to sustain a rally.

“Bitcoin spot demand is still falling, but not as fast.

Demand momentum just hit its most negative level since Oct '24.

Until both recover, sustained upside remains unlikely.”