Bitcoin experienced a decline during intraday trading as the short-term retracement continued to unfold. Market participants are now closely monitoring whether key support zones can sustain after the recent upward surge.
This downward movement comes on the heels of a robust rally that began in late December, which had already aligned with predictions for a brief rebound followed by a pause.
Ongoing Short-Term Retracement
The cryptocurrency appears to be undergoing a temporary correction phase following its sharp ascent from the low recorded on December 31. This pullback was anticipated given the rapid gains earlier this month and does not yet indicate any major shift in trend direction.
Thus far, the decline has been orderly, suggesting consolidation rather than panic-driven selling pressure.
Critical Support Zones Being Tested
Currently, Bitcoin’s price is hovering around an essential support range between $90,400 and $90,800. Should prices decisively fall below this band, there could be increased risk of further downside toward levels seen at the end of December.
At present, Bitcoin remains above these thresholds maintaining its overall recovery framework. Minor dips beneath certain technical markers are still viewed as normal within typical retracement behavior.
A Period of Sideways Movement Likely Ahead
This phase may persist for several days with Bitcoin potentially trading sideways as investors seek clearer market direction. Similar pauses have occurred previously during this rally and served to recalibrate momentum before additional gains were made.
The possibility also exists for erratic price fluctuations often characteristic of such consolidation periods.
Bullish Potential Remains if Resistance Is Surpassed
If Bitcoin manages to break above $94,850—the recent weekly peak—it would signal an end to this corrective pullback. In that scenario, targets could extend toward the $97,000-$98,000 zone.
Until then, price movements are expected to remain sensitive around key support levels with traders vigilantly watching for confirmation that a short-term bottom has been established.