This week, the cryptocurrency market witnessed a significant downturn as Bitcoin closed at $94,290, falling below the crucial $96,000 weekly support level. This development has left bullish investors feeling disheartened and signaled a likely continuation of bearish price action in the coming weeks. With key support levels now compromised, any potential upward movements are anticipated to lack the strength necessary for a sustained recovery.
In the preceding weeks, Bitcoin had been tracking closely to the $96,000 support level, but the recent close near the week’s lows indicates a bleak outlook for any resurgence of bullish activity. The next major support level has been identified in the $83,000 to $84,000 range, corresponding to the 0.382 Fibonacci Retracement of the price movement from the 2022 bottom to the projected high in October 2025. Furthermore, should these levels fail to hold, traders may look to the consolidation zone established in 2024, where historical highs lay between $69,000 and $72,000.
Resistance levels have thickened above the current price, complicating any recovery attempts. Should a bounce occur, resistance is anticipated at $98,000, with a potential short squeeze capable of pushing prices to $101,000. However, significant barriers, described as a “brick wall,” appear in the $106,000 to $109,000 zone, with formidable further resistance levels at $114,000 and $116,000. A close above $116,000 would prompt a reevaluation of the market structure, potentially flipping the sentiment to bullish.
Market sentiment remains extremely bearish, with many observers noting that Bitcoin has plummeted over 25% from its October highs. The sentiment stands in stark contrast to earlier expectations of a potential rally. Given the unfavorable market conditions, the prospects for finding meaningful support seem grim as resistance looms large overhead.
Further analysis of Bitcoin’s cyclical nature suggests that the recent peaks may have already been established. While some speculate that the next major cycle high could occur in the first quarter of 2026, the prevailing sentiment indicates such a scenario is unlikely given the weak state of Bitcoin and the existing strength within the broader stock market.
As traders digest these market dynamics, they are left to contemplate the resilience of Bitcoin in the face of growing resistance and the overarching bearish climate. The days ahead will be telling, as the community watches closely for signs of a potential turnaround or a deeper descent into bearish territory.
