Last week, the market was poised for a potential breach of the crucial $84,000 support level, and to the disappointment of the bulls, it indeed occurred. Bitcoin experienced a slight rebound following the previous week’s close, but it quickly fell through the $84,000 support level, plunging to $75,600 on Saturday. It then made a modest recovery, wrapping up the week at $76,919. Bitcoin experienced a 13% decline last week, suggesting a potential bounce back to around $80,000 early this week. However, a continued downward trend should be anticipated in the near future. The bulls are feeling the pressure this week following the breach of the crucial $84,000 support level. We are witnessing a slight bounce early on, but the bulls will face significant challenges in reclaiming any substantial ground. $79,000 is expected to act as resistance in the early stages, while $81,000 stands as the subsequent resistance level above it.
With $84,000 now breached as support, it is expected to act as formidable resistance on any upward movement. $87,600 at the POC on the volume profile is expected to act as a formidable barrier of resistance if the bitcoin price can successfully wick above $84,000. The bears have firmly established their dominance in the market. The price has rebounded from $75,600, making this level our initial point of support. However, it’s important to note that it may not withstand pressure if faced with selling momentum. As we dip below $75,000, the focus shifts to the support zone ranging from $72,000 down to $68,000. A strong rebound from this level is justified given the significant volume that accumulated during the 2024 consolidation phase.
Losing $67,000 below this support level could pave the way to $58,000, aligning with the 0.618 Fibonacci retracement. $42,000 stands as a support level beneath current prices, but it’s unlikely to be tested in the near future. Analyzing the daily chart reveals that the RSI has reached oversold territory in recent days. The bulls are expected to attempt a modest rebound in the near future. Bitcoin price appears poised to continue its descent towards the $72,000 mark before attempting a rebound. Should the bounce materialize, it is expected to test the $79,000 resistance level, and potentially reach as high as $81,000, but anything beyond that seems unlikely.
At this juncture, even the most steadfast bulls must acknowledge that we are undeniably in a prolonged bear market. Losing the 100-week SMA, which had been support for several weeks, marked a significant indication of strength for the bears. Anticipate that the bitcoin price will stay under $87,600 until a long-term bottom is established in this market. A significant high volume node exists between $68,000 and $60,000, indicating that the price may experience a prolonged period of fluctuation in this range if the $68,000 support level is breached.