Bitcoin Faces Key Test Below $91,000 as Price Eyes $85,000 and $100,000 Levels

Bitcoin is struggling in the short term following its strong upside momentum, and this has made it difficult to project what to expect next. While some analysts believe that it is just a temporary correction within a higher trend, others believe that it might fall further based on certain indicators.

At the time of writing, Bitcoin is trading at $90,915 with a 24-hour volume of $55.64 billion and a market capitalization of $1.81 trillion. It is down 1.81% over the last 24 hours as uncertainty increases following its recent rise.

Source: CoinMarketCap

Bitcoin Pullback Signals Start of Major Rally

Although there was a slight correction, most analysts are of the opinion that the overall trend is quite positive. Mr. Crypto Whale, a crypto analyst, recently stated that the price of Bitcoin had broken the $91,000 mark, and this could be the starting point for a much bigger rally.

Source: X

This current pullback may very well be the final shakeout to remove weak hands before another major move up,” he says. “The road to $100,000 is laid out before us and may just appear sooner than anyone expected.

This current phase, he says, is likely to be a missed opportunity for those who refuse to begin participating in what may prove to be the crypto market’s biggest bull run in history.

Bitcoin Risks Deeper $85,000 Correction

Conversely, however, not all analysts are as positive in the short term. Another analyst, CRYPTOWZRD, observed that the daily candle closed in a bearish manner, as he had expected. He warned that the price could drop even lower due to the following of CME gaps in a low-liquidity market.

Source: X

CRYPTOWZRD pointed out a daily double top within a transitional and low liquidity annual chart action and called for a possible deeper correction. The level to watch for further selling is, in his opinion, $85,000.

This, according to him, will affect the overall crypto market trend. Most altcoins will also follow this trend. Bitcoin Dominance is still below 59% and remains uncertain. In the event of a further downturn in the level of dominance, the altcoins would experience smaller declines when Bitcoin pulls back, or the altcoins would experience larger declines when the level of dominance increases.

Also Read | Bitcoin Price Prediction: Strong Q1 Move Possible as BTC Approaches $90K Liquidity

Bitcoin Faces Key Support Decision

In the short term, Bitcoin is resting close to its support at $90,400. There could be a bounce, and then perhaps a drop, and that could be a shorting opportunity. If a breakdown happens at that level, then a strong fall can be expected to fill the remaining CME gaps.

The current situation of Bitcoin is at a critical point. The upcoming trading sessions will reveal whether Bitcoin will return to the six-figure mark or whether it will enter a correction.

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