Bitcoin Price Analysis: Key Support Levels Broken
Bitcoin (BTC) has recently fallen below two critical support levels, raising concerns about a potential drop to $100,000. This decline follows BTC’s inability to surpass the $109,000 resistance over the weekend, resulting in a pullback to $105,250 on Tuesday. Analysts from Bitfinex suggest this could signal a local top or the start of a consolidation phase for Bitcoin.
Technical Indicators and Market Sentiment
Technical analysis reveals Bitcoin is trapped between a downtrend line and moving averages, indicating possible range expansion. The upsloping moving averages slightly favor bulls, but the RSI near the midpoint shows weak bullish momentum. A sustained drop below moving averages could push BTC to $104,500 or even $100,000, maintaining the bearish descending triangle pattern.
Potential Outcomes for Bitcoin
If Bitcoin rebounds off the moving averages and breaks the downtrend line, it could challenge the all-time high of $111,980. The 4-hour chart shows profit-booking by short-term traders, with $104,500 as a critical defense level. Failure to hold this level may test the $100,000 psychological support.
Key Takeaways
- Bitcoin’s price is at risk after breaking key support levels.
- Technical indicators suggest mixed signals with potential range expansion.
- $104,500 and $100,000 are crucial support levels to monitor.
- A break above the downtrend line could target the all-time high.
This analysis is based on current market conditions and does not constitute advice. Readers should conduct their own research before making decisions.
