The cryptocurrency market witnessed a dramatic decline on Friday, often referred to as Black Friday, but both Bitcoin (BTC) and altcoins are now showing signs of recovery.
Bitcoin has bounced back to $114,000 and Ethereum (ETH) is trading at $4,100. However, an analyst has suggested that Bitcoin might dip below the $100,000 mark.
According to Coindesk’s market expert Omkar Godbole, Bitcoin faces the possibility of dropping under $100,000 after failing for the third time to surpass its crucial trend line.
The analyst highlighted that Bitcoin’s inability to break past this long-term trendline—which links the peaks from 2017 and 2021—could lead it below $100,000 if this pattern persists.
This repeated failure is not just a coincidence; it’s forming a resistance pattern that’s hindering Bitcoin’s upward movement. The recent crash on Friday marks another instance where bulls couldn’t maintain their position above this significant trend line from previous highs in 2017 and 2021. This scenario heightens the risk of further declines towards or beneath $100,000.
“Bitcoin has thrice failed to breach the long-standing trend line connecting its peaks from 2017 and 2021. This confirms a medium-term downward trajectory.”
“This particular trendline serves as critical resistance within the current bullish phase; technically speaking, three failures establish a recognizable pattern.”
The analyst also observed that candles with long wicks seen in July through October indicate diminishing upward momentum. Additionally, despite remaining positive overall compared with December-January rallies previously experienced by MACD histogram values remain lower than before indicating weakness near historical trends lines .
“While still positive ,the MACD histogram shows less strength than during earlier rallies suggesting weakening momentum upwards .”
Recently noted by analysts was potential downside risks including primary support levels found around simple moving averages over two hundred days at approximately$107k ; breaking below these could result prices falling further downwards beyond even$90k threshold whereas conversely should prices exceed121800USD then possible bullish rally may ensue instead according same source who emphasized importance maintaining above such points order sustain any future growth cycles effectively.*
* Please note: These insights do not constitute financial advice.