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Bitcoin has found itself in a tough spot, struggling to reclaim the coveted $100,000 mark after a rapid shift in market sentiment. Just a few weeks ago, optimism dominated the scene, with prices rising to new heights. However, the narrative has taken a sharp turn, as fear is now gripping the market following the sudden correction.
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Bitcoin is currently trading below $100,000, and Bitcoin’s price action reflects increasing uncertainty among investors. Senior analyst Axel Adler recently shared his thoughts on X, emphasizing the importance of the $90,000 level as a strong support area. According to Adler, this area extends to the lower $79,000 range, providing a safety net in case of further declines. He highlights that maintaining this support is crucial for Bitcoin to stabilize and regain upward momentum.
While current sentiment leans toward caution, historical trends suggest that Bitcoin often thrives after testing key support levels. The market focus has now turned to whether BTC can defend this critical zone and make a recovery. In the coming days, the $90,000 mark will be a pivotal battleground, determining whether Bitcoin can regain its footing or continue its decline. Investors and analysts alike are watching these developments closely, waiting for the next major step.
Finding demand for Bitcoin below $100K
Bitcoin price action has gone from testing all-time highs to finding strong demand below the $100,000 mark. This area will determine whether the rally will resume or the market will confirm a deeper correction. Amid this uncertainty, said chief analyst Axel Adler Provided critical insights into Xhighlighting the key levels that make up Bitcoin’s trajectory.
Adler’s analysis highlights the importance of the $79,000 level, which recently recorded the largest unrealized gains and losses (P/L) of the past decade. This data indicates that the $79K area is not only a psychological benchmark but also a crucial support level with significant market activity.
Additionally, he emphasized that the $90,000 mark is a strong support area, with its lower bound set at $79,000. Adler notes that holding above $90,000 in the coming weeks would enhance bullish momentum, making a rise beyond $100,000 highly likely.
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However, Adler also warns of the possibility of a sideways consolidation phase. Such a move could act as a cooling-off period for the market, allowing it to absorb recent gains before resuming its upward trajectory. Currently, Bitcoin price action remains at a pivotal crossroads, where its ability to hold support levels determines whether the next phase will be a breakout or a correction. Investors are watching closely.
Technical Analysis: Key Levels to Hold
Bitcoin is currently trading at $96,200, reflecting days of indecision and sideways price action that has left traders unsure about what’s next. Despite this consolidation phase, BTC remains within a critical range, and its next trend will likely depend on whether the bulls or bears take control.
For bullish momentum to return, Bitcoin must decisively break above the psychological level of $100,000. Achieving this milestone would signal renewed strength and could pave the way for further price discovery, which could spark another phase of the rally. On the other hand, holding above $92,000 will still sustain the bullish narrative, as it shows resilience in a crucial support area.
However, concerns about a potential contraction remain among analysts. Some experts expect Bitcoin to fall to the $70,000 level in the coming weeks if the $92,000 support fails to hold. This bearish scenario would represent a major correction and could shake market sentiment.
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In the current environment, the price of Bitcoin has reached a pivot point, where the bulls need to regain control to push the market higher. Until then, the market remains vulnerable to both bullish breakouts and bearish breakdowns, leaving investors to watch these key levels carefully for further evidence.
Featured image by Dall-E, chart from TradingView