- Bitcoin’s $100,000 support is under threat, signaling potential market drop.
- Rejection at $124,000 could push Bitcoin toward a major correction.
- $88,000 target emerges as Bitcoin faces heightened risk of retreat.
Bitcoin’s price is facing a critical test as it nears a key support level that could determine its future direction. The cryptocurrency has just met resistance at the upper Bollinger band of about $124,000, and it is currently drifting back to the center Bollinger band of about $107,000. This move in the price is provoking some concerns because it recalls some past trends in which Bitcoin was unable to sustain upward movements after surpassing the peak of its price channel.
If Bitcoin cannot support the midline at $107,000, the focus will be on the lower Bollinger Band, which is now at around $88,000. A drop to this level would not only break the six-figure support line but also signal a deeper correction that could have significant consequences for the entire crypto market. This has been a psychological obstacle to many traders, and a breach in this line is even more frightening.
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Bitcoin Faces Reversal Risk: Key Levels Under Threat Amid Market Volatility
This current setup closely resembles earlier market reversals. For example, earlier this year, Bitcoin’s dip into the lower Bollinger Band marked the start of a strong rebound. However, rejections in both March and July led to extended declines, suggesting that the market may be shifting into a more bearish phase. Since Bitcoin is currently testing the identical technical levels, numerous analysts are convinced that the danger of further retreat is growing.
Also, the macroeconomic environment further pressures Bitcoin. As inflation and economic uncertainty remain the external conditions and elements influencing investors’ sentiment, the cryptocurrency has never been so vulnerable to a massive pullback as it is currently. Unless Bitcoin can keep its price higher than the mark of $100,000 for the week, the prospects are even worse, and the next significant mark of interest turns out to be the support level of $88,000.
As the market volatility remains elevated, the entire market is keen on whether Bitcoin will be able to sustain the levels or not. Any breach less than this would likely cause a chain reaction, pushing the cryptocurrency to lower levels. Whether Bitcoin can maintain its bullish trend or face a major crash hinges on the next few days.
Also Read: Bitcoin Advocate Jeremie Davinci Calls XRP a ‘Scam You Can Gamble On’
