A recent technical analysis on TradingView indicates that Bitcoin may be nearing a crucial moment, with potential for a breakdown below essential support levels. This assessment comes as buying pressure for Bitcoin weakens, raising the chance of a dip below a vital support threshold. Should this occur, Bitcoin might experience further declines to $80,000 or even $73,000 in the upcoming weeks.
Bitcoin Undergoes a Key Support Test at $93,000
The technical analysis reveals that Bitcoin has been trading within an upper resistance zone at $108,000 and a lower support level at $93,000. Notably, crypto analyst MMBTtrader observed that this support area has undergone multiple tests—specifically, six times since Bitcoin began fluctuating in this range. Such frequent retests are likely to erode the strength of this support, as buyers may soon lose confidence.
The latest examination took place on February 18, when Bitcoin bounced back at $93,900, just above the crucial $93,000 mark. However, Bitcoin has not yet shown a definitive recovery from this area, leaving open the possibility of a complete breakdown. The analyst highlighted that the chances of falling below the $93,000 support have grown as buying momentum continues to weaken.
A sudden break beneath $93,000 could provoke a continued decline and set the stage for a drop to the next significant support level at around $72,000, although a minor support level at $78,900 may provide some resistance to a sharp downturn. Interestingly, this bearish outlook aligns with earlier analyses that noted a lack of robust support within a $12,000 range from $87,000 to $75,000.
Bitcoin at a Crossroads: Breakdown or New Highs?
MMBTtrader’s technical analysis highlights Bitcoin’s present market conditions, which suggest a phase of consolidation rather than outright bearishness. Even though recent trends point toward potential bearish movements, Bitcoin has not transitioned into a fully bearish state.
Currently, the price action indicates a period of indecision, with both bullish and bearish outcomes still on the table. The repeated tests of the $93,000 support may trigger a significant breakdown; conversely, a resurgence of buying pressure could ignite a rally surpassing $100,000.
The analyst also proposed that Bitcoin could regain buying momentum and bounce off the $93,000 support level. If this support holds, Bitcoin might gather strength for another rally toward a new all-time high. In this context, the analyst identified a target rally zone aimed at a new peak around $113,220.
As of this writing, Bitcoin is trading at $96,470, reflecting a 2% decrease in the last 24 hours. It has also dropped by 11.5% from its all-time high of $108,786.
Featured image from Pixabay, chart from TradingView
