Bitcoin price has struggled to reclaim previous highs above $100,000, with bearish sentiment dominating the market. Currently, Bitcoin price is retesting the support line of the ascending channel after falling below $95,000. One cryptocurrency analyst predicts that if Bitcoin can hold this critical support level, it could rebound and surge to the next bullish target, which is aligned with the upper resistance line of the channel.
Bitcoin price retests support line; new target in sight
In a chart showing Bitcoin’s price action within an ascending channel, X (formerly Twitter) cryptocurrency analyst trader Tardigrade revealed that the cryptocurrency has temporarily broken below the channel’s lower support line. The analyst dubbed the drop a “false breakout,” stressing that despite the drop, the ascending channel remains intact.
As indicated by the red circle on the price chart, the false breakout suggests that Bitcoin’s break below support was only short-lived and did not confirm a continuation of its prior downtrend. Trader Tardigrade noted that after Bitcoin’s false breakout, the cryptocurrency quickly returned to the ascending channel, retaking the lower support line.
Interestingly, Bitcoin’s fall below the false breakout point came as the pioneer cryptocurrency’s price plummeted below $95,000. The flagship cryptocurrency has been under significant bearish pressure recently, with prices experiencing significant price declines as market volatility intensified.
Despite Bitcoin’s bearish performance, trader Tardigrade revealed that Bitcoin is now retesting the support line of the channel, aiming to break out and trigger a price reversal. The analyst predicts that if Bitcoin can hold this support line, it will most likely continue to move up within the channel.
Therefore, analysts predict that Bitcoin’s next price target will be the upper resistance line of the ascending channel. Looking at the price chart, the channel points to the range between $110,000 and $112,000.
If Bitcoin can successfully rally back above the overhead resistance line, it could signal a continuation of the bullish trend within the ascending channel. Additionally, a breakout above the resistance line could further validate the bullish momentum, setting the stage for Bitcoin to potentially target higher price levels and potentially retest its all-time highs.
Bitcoin could drop to $87,000, analyst says
Bitcoin is currently in a downtrend, with prices falling sharply despite optimistic forecasts of price increases from analysts. According to Titan, a cryptocurrency analyst at Crypto, Bitcoin price could fall again, with the next target being the $87,000 support level.
However, according to the analyst, a drop to this price low could cause “maximum pain” for both short-term and long-term investors. However, Titan of Crypto believes that this severe price drop could also lay a solid foundation for Bitcoin’s next price rally.
He stressed that price action is rarely linear, highlighting the inherent unpredictability and volatility of the cryptocurrency market. Despite Bitcoin’s bearish performance, Titan of Crypto confidently predicts that a price rally to $110,000 is inevitable.
