Bitcoin’s recent surge was short-lived as the $100k mark continued to pose a threat, suppressing further buying phase. While gathering liquidity, it may lose momentum if this mark level continues to hold as resistance.
Last week, Bitcoin attempted a bullish move after a slight break from a two-week consolidation phase. The move was quickly stopped under the $100k mark and the price slipped back into the $95k range – which has been the asset’s average trading price level for almost three weeks now.
That technical resulted in a false breakout with a trap at around $99,500. Looking at the setup, the market is now on the verge of breaking down.
Meanwhile, the bullish attempt came after staying well above the $94k level throughout that phase. And up until now, this level still provides support for the market. But from the look of things, it will likely break soon due to the latest bearish build-up under the mentioned mark level. This may also lead to a major break below the white rising support line.
If that happens, Bitcoin may see a heavy roller coaster to the $71k region before halting the sell-off. As of now, there’s still hope for the bulls if they regroup well. It currently holds a 60.2 % share of the market cap while is in a fearful state.
Source: Tradingview
Aside from $94,000, the $91,000 level is considered the next important support for Bitcoin’s breakdown. That should confirm a bearish double-top pattern before collapsing heavily through $85k to test the $71k level.
BTC has established resistance at $99,550 for a while now. If the price successfully climbs back above this resistance with a strong daily close above the mark level, it may reclaim $103,278 and $109,588.
Key Resistance Levels: $99,550, $103,278, $109,588
Key Support Levels: $94,000, $91,000, $85,000
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: andriiborodai/123RF // Image Effects by Colorcinch
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