Bitcoin’s price has seen a significant erosion of its $90,000 support level as traders brace for potential volatility as the weekly close approaches. Over the weekend, Bitcoin’s price displayed minimal movement amidst a stubborn horizontal resistance, a situation that analysts believe is poised for a breakout.
The ongoing low volatility is raising expectations for a directional move. According to trader analyst Aksel Kibar, the current market setup reflects “extreme low volatility,” suggesting a major price shift is imminent. Kibar pointed to two potential scenarios: a breakdown from the prevailing bear flag pattern may drive the price towards the $73,700-$76,500 region, or a successful breach of $94,600 could lead to a rally toward $100,000.
Currently, Bitcoin is stabilizing around the $90,000 mark. Analysts emphasize that for any bullish momentum, reclaiming the $92,000-$94,000 territory is essential. Conversely, if prices dip below the $88,000-$89,000 levels, a decline toward $85,000 could follow, as noted by trader Crypto Tony, who highlighted the importance of trading only on breakouts.
Adding another layer of caution, on-chain analytics platform CryptoQuant reported a bear market might already be in progress. Their analysis showed that Bitcoin has been trading below key trendlines and declining simple moving averages, which have shifted into resistance zones. Contributor Pelin Ay noted that attempts to push higher have generally occurred with low volume, indicating a lack of buying strength and stronger selling pressure.
While Ethereum has made strides toward recovery, Ay remarked that the outlook for Bitcoin remains grim, suggesting a possible deepening of the bear market with potential price targets near the $50,000 mark before any significant upward movement can take place.
As discussions regarding a further decline intensify, it’s crucial for investors and traders to tread carefully, given the heightened risks and ongoing uncertainty in the market. The current sentiment reflects cautious optimism about potential rebounds, but with many indicators pointing toward a bear trend, vigilance is essential.
