Bitcoin Price has recently experienced a significant drop, falling below the crucial $90,000 mark. This decline has brought the cryptocurrency to a pivotal support area, prompting analysts to examine its future direction. Over the past week, Bitcoin’s price decreased by 5%, sparking concerns about a potential retest of the November lows.
Bitcoin Price Retests $88,000 Support
Last Friday marked a critical point as Bitcoin lost the $90,000 level, descending to a significant support zone before stabilizing. The flagship cryptocurrency has been attempting to recover from a market correction in November that saw its price plummet to $80,600, a seven-month low.
Since then, Bitcoin has remained within a macro re-accumulation range, trading between $82,000 and $93,500. This range was breached last Wednesday when Bitcoin reached a multi-week high of $94,150, only to fall back as December began, tapping the $88,000 support.
Struggles at the $94,000 Resistance
Analyst Ted Pillows noted that Bitcoin has had difficulty reclaiming the $94,000 resistance level, suggesting that it might dip further before making another breakout attempt. He emphasized the likelihood of a bounce from the $88,000-$89,000 support range.
Another analyst, Altcoin Sherpa, highlighted two potential scenarios. In the first, Bitcoin could retrace to the $87,000-$89,000 area and then surge above the $93,000-$94,000 resistance. In the second, Bitcoin might continue to linger below the resistance, risking a slide back to November’s lows.
Bitcoin Price and Pullback Tendencies
Rekt Capital analyzed Bitcoin’s persistent rejection from the range high resistance but suggested that a shallower pullback than previous ones could indicate weakening resistance. He explained that if Bitcoin’s retracement continues to be less significant, it might eventually overcome this barrier and aim for higher levels.
Earlier this week, Rekt Capital asserted that Bitcoin’s consolidation structure remains unbroken as long as it maintains weekly closes above the range lows. He pointed out that the Macro Downtrend, a long-standing resistance level, remains a significant obstacle for Bitcoin.
As Bitcoin stabilizes within the $88,500-$89,350 zone, the analyst remarked that the current retracement is shallower than the last two, preserving the pattern of diminishing pullbacks.
As of now, Bitcoin Price stands at $89,400, reflecting a 2.9% daily decline. The ongoing analysis suggests that Bitcoin could dip to the $86,000 mark or reach the ascending two-week support trendline and still maintain a shallower correction.
