The price of Bitcoin (BTC) has shown only sideways movement in the last day resulting in a minor price loss of 0.37%. In the larger timeframe, BTC remains in a strong consolidation range between $95,000-$98,000, putting majority of traders on alert for an immediate breakout. Meanwhile, a market analyst with X username Cryptododo7 has shared some insights on the current BTC market structure highlighting the influential key price levels in the short term.
Bitcoin At Major Crossroads – Is A Crash To $76,000 Feasible?
Bitcoin registered a new all-time high of $109,114 on January 20 as US President Donald ***** assumed office. However, the premier cryptocurrency has struggled to establish any robust bullish momentum since then, sliding into falling ranges of consolidation.
Currently, BTC trades around $97,000 with no inkling on its future direction. According to Cryptododo7 in an X post on February 15, the asset’s descent from $109,000 has formed a strong downtrend resistance with $102,000 acting as the third point of resistance.
In the case of any price breakout, the crypto analyst postulates Bitcoin will experience a significant decline if it fails to break past $102,000 presenting a serious opportunity to short the market. In that case, Cryptododo7 is banking on BTC to fall to $84,000 which represents a potential support zone where a substantial amount of buyers may step in.
However, if the current Bitcoin position continues to weaken resulting in a steady price fall, the next critical level to watch is $91,800. Cryptododo7 warns that a price break below $91,800 would likely create a backrest scenario where prices temporarily retest this level as resistance before declining further. In such a case, Bitcoin could fall to $76,000 which aligns with historical double-top structures that often act as a strong support or reverse zone.
Market Bulls On Hold Until $108,400 Breakout
In terms of resuming its bull run, BTC must show signs of reclaiming its previous highs of which $108,400 is likely the final confirmation of a bullish reversal.
According to Cryptododo7, a successful price close above the $108,000 level on both a daily and weekly basis would invalidate all bearish predictions signaling a renewed uptrend, with potential for new price discoveries. At press time, Bitcoin trades at $97,593, following a 1.18% gain in the past week. However, daily trading volume is currently down at 45.53% and valued at $17.38 billion.
Featured image from iStock, chart from Tradingview