Bitcoin is currently exhibiting signs of vulnerability on its daily chart, sparking concerns that the recent upward momentum might have already reached its peak. Experts point out that the price has fallen below a crucial ascending trend line, and all eyes are on how the daily candle will close to determine if this breakdown is sustained.
This development occurs as Bitcoin encounters resistance in a zone where a short-term top was anticipated. The initial warning came when prices dipped beneath last Friday’s low, increasing the likelihood of a more significant retracement.
Potential Downside Levels Gain Attention
From a technical perspective, Bitcoin could be targeting the $74,000 to $75,000 range if bearish pressure persists. This would represent the next key support level should selling intensify further.
Nonetheless, analysts acknowledge that there remains room for a brief rebound. Should buyers emerge strongly between $82,500 and $86,900, Bitcoin might experience a temporary recovery rally. However, this bounce would probably serve as just a corrective move rather than signaling renewed long-term strength.
Key Support Zones Are Being Closely Monitored
The $86,900 mark aligns with an important Fibonacci retracement level and has historically functioned as an area where buyers step in. Additional nearby levels seen during December’s buying activity are also under scrutiny by market watchers.
Despite these potential supports, experts caution that rebounds aren’t guaranteed; even within broader downtrends short-lived recoveries often occur when rapid declines lead to oversold conditions.
The Short-Term Outlook Shows Increased Weakness
On shorter timeframes, Bitcoin has already reached an immediate downside target near $90,800—a level previously identified by analysts as likely for triggering another wave of selling pressure.
The resistance zone between approximately $92,800 and $93,700 remains strong; it capped prices before the recent downturn. Failure to reclaim this range could prompt further declines before any substantial bounce takes place.
What Lies Ahead?
A clear indication from analysts would be observing a full five-wave decline pattern, which typically signals completion of corrective phases in markets. If such structure completes, it may pave way for clearer opportunities toward recovery moves.
At present, market sentiment appears mixed: while minor rebounds remain possible, there is still no convincing evidence pointing toward decisive upside reversals or pushes toward new record highs anytime soon.