Bitcoin (BTC) Price Compressing Between Two Key Levels Is $74,000 Or $91,000 Next?
As Bitcoin (BTC) recovers from its five-month low, the cryptocurrency attempts to reclaim the $84,000 resistance. Some market watchers suggest that more volatility could be around the counter, as the price is compressing between two key levels.
Bitcoin Retests 4-Month Downtrend Line
Over the past week, Bitcoin has been trading between the $74,000-$84,000 price range following the recent tariff war-related volatility. After hitting a one-week high of $84,720, the flagship crypto hit a five-month low of $74,773, driven by this weeks market correction.
Amid this performance, the cryptocurrency risked a 13.7% drop to the $69,000 support, as it generally needs a daily close above the $78,500 level for a potential short-term rebound. However, BTCs price has surged 13.5% since Mondays lows and attempted to reclaim the $84,000 resistance.
The market recovery was fueled by US President Donald Trumps 90-day pause on the trade tariffs for over 75 nations, which saw the crypto market and stock prices jump 6%-10% in an hour this Wednesday.
Nonetheless, the tariffs-driven rally slowed Thursday, with Bitcoin retracing nearly 5% to the $79,000 support. Analyst Alex Clay asserted that despite the bullish rally, BTCs price needed to reclaim the broken $80,000 support and break through the descending 4-month resistance as its short-term structure continued looking bearish.
During BTCs 7% surge in the past 24 hours, the analyst highlighted the key support zone held, invalidating his bearish scenario. However, a breakout and reclaim confirmation of the $84,000 remained crucial for BTCs price.
BTC Preparing For More Volatility?
Analyst Rekt Capital pointed out that Bitcoin successfully retested the $78,500 support, but its price was rejected from the 4-month downtrend resistance. Therefore, the flagship cryptos price is now compressing between these two levels, which usually precedes volatility.
The analyst also noted that BTC is developing yet another Higher Low on the RSI while forming Lower Lows on the price. During this cycle, the cryptocurrency has formed multiple bullish RSI divergences in the daily chart, each preceding a reversal to the levels.
Bitcoins Daily RSI equaled 2022 Bear Market RSI levels (RSI=23.93) when price crashed into the high $70,000s. The only lower Daily RSI in this cycle was back in August 2023 (RSI=18.28). Throughout this cycle, each visit into sub-25 RSI resulted in a trend reversal to the upside over time.
Meanwhile, crypto analyst Ali Martinez suggested that BTC could see a retrace back to the $74,000 support zone. He observed that Bitcoins movements within its weekly range display a W-shape to the upper boundary, and its price action seemed to be forming an M-shape after Thursdays retrace and Fridays jump, which eyes the ranges lower boundary.
On the contrary, the analyst also highlighted Bitcoins Friday performance, affirming that it is slicing through key resistance at $82,360. Notably, BTCs price then jumped toward the $84,000 barrier, hitting a daily high of $84,220 before retracing to the $83,500 mark. According to Martinez, A sustained breakout could open the door to $91,500.
As of this writing, Bitcoin trades at $83,640, a 1% decline in the weekly timeframe.
Text source: NewsBTC
