Bitcoin price has been struggling to reclaim its previous price 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 it can hold this critical support level, it could recover and surge to the next bullish target, which aligns with the upper resistance line of the channel.
Bitcoin price retests support line; new target in sight
In a chart illustrating Bitcoin’s price movement within an ascending channel, crypto analyst Trader Tardigrade of X (formerly Twitter) 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.
Source: X
As shown by the red circle in the price chart, the False Break indicates that Bitcoin’s brief volatility below support was short-lived and does not confirm a continuation of its previous downtrend. Trader Tardigrade noted that after Bitcoin’s False Breakout, the cryptocurrency quickly returned to the ascending channel to reclaim the lower support line.
Interestingly, Bitcoin’s False breakout comes at a time when the pioneer cryptocurrency’s price has plunged sharply below $95,000. The flagship cryptocurrency has been facing notable bearish pressure in recent times, recording notable declines as market volatility has increased.
Despite the bearish performance, Trader Tardigrade revealed that Bitcoin is now retesting the support line of the channel again, aiming to break through and trigger a price reversal. The analyst predicts that if Bitcoin can hold this support line, it will most likely continue to move upward within the channel.
Therefore, analysts predict that the next price target for Bitcoin will be the upper resistance line of the ascending channel. Looking at the price chart, the channel points upwards to the range between $110,000 and $112,000.
If Bitcoin can successfully recover above the 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 severe price drops despite optimistic analyst predictions of a surge. According to crypto analyst Titan of 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. Nonetheless, 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 movements are rarely linear, highlighting the inherent unpredictability and volatility of crypto markets. Despite Bitcoin’s bearish behavior, Titan of Crypto confidently predicts that a price rally to $110,000 is inevitable.
