Analyst Says Bitcoin Price Could Retest Substantially Below $100,000 If This Level Fails
Bitcoin’s recent rise above $100,000 has the market on edge as bullish momentum attempts to establish new liquidity areas surpass this milestone. The push has brought huge volatility over the past 24 hours, with Bitcoin trading between $99,701 and $106,307 during the period.
this Severe fluctuations are This allowed Bitcoin’s daily close to be above key converging resistance that has capped price action over the past month. Despite these developments, Bitcoin continues to test the $106,000 upper limit, and a decisive rejection of this level could trigger a downturn that could push the price as low as $91,000.
Bitcoin manages to close above converging resistance
according to Technical analysis from Cryptocurrency analyst Rekt Capital said Bitcoin closed daily above important confluence resistance levels. This was noted in a technical analysis of Bitcoin’s daily candlestick price action posted on social media platform X and highlighted a key event in Bitcoin’s rally. The converging resistance in question is defined by two key elements: a horizontal resistance trendline at $101,165 and a descending trendline that has been setting higher levels since Bitcoin reached its all-time high of $108,135 on December 18, 2024. Low highs.
Related reading
Since breaking out of this confluence area, Bitcoin has Successfully pushed to $106,000but the candlestick pattern is starting to show slowing momentum. In particular, Bitcoin created hammer and doji candlesticks on consecutive days, both of which are traditionally associated with slowing momentum or underlying market indecision. This suggests that the bullish momentum may be rapidly fading and opens the possibility of a downside move to retest the just-broken confluence area.
Bitcoin needs to stay above this level
Maintaining a position above the breakout confluence area will be crucial in determining Bitcoin’s next move. As highlighted by Rekt Capital, continued rejection of the $106,000 level could lead to a downward move towards a retest of the confluence area, highlighted by the green circle in the chart above.
Related reading
If Bitcoin does retest this area, there are two potential scenarios that could play out. The first and more bullish outcome would involve a successful retest followed by a rebound in the confluence area. This behavior is characteristic of post-breakout price action, where a pullback strengthens new support and allows price Build momentum up the other leg.
In contrast, the second scenario is more pessimistic. If Bitcoin fails to hold converging support, the cryptocurrency may face greater selling pressure, trigger deeper corrections.
According to analysis by Rekt Capital, the next important support levels to watch are $91,070 and $87,325. A drop to these levels would mean a sharp correction and could reset the market’s short-term expectations.
Bitcoin is currently trading at $106,100.
Featured images from Unsplash, charts from Tradingview.com
