Bitcoin Price Approaches Critical $90k Support: Possibility of a Rebound to $135k?

Bitcoin has once again retraced to the vital $90,000 support level, which previously indicated the bottom of its last cycle. This situation offers the potential for a reversal if buyers are able to defend this area decisively.

Key Takeaways

Bitcoin is testing crucial $90,000 support, a potential reversal point.
Sustaining this support could lead to a price rally towards $135,000.
Repeated tests of $90,000 may indicate the strength of long-term buyers.
A fall below $90,000 might signal a shift in market control and invalidate bullish expectations.

Bitcoin price tests historical support for a potential reversal in price.

Bitcoin Bitcoin btc-0.55% is reaching a pivotal moment in its overall market structure as it tests the $90,000 support level, a key zone that marked the last significant low in the broader trading channel. This area has substantial historical significance due to its alignment with various technical indicators, such as the value area low and the lower boundary of the long-term trading channel.

Michael Saylor recently emphasized that his strategy can endure a drop of 80 to 90 percent in Bitcoin prices, underscoring the importance of these long-term support levels for major market players.

Key Technical Insights on Bitcoin Price

Bitcoin price faces crucial $90k test: A bounce back to $135k in play? - 1
BTCUSDT (1D) Chart, Source: TradingView

Bitcoin’s re-evaluation of the $90,000 region is significant, as this level previously marked the bottom of the last cycle, setting the stage for a strong ascent toward the mid-range and upper limits of the long-term channel. The return to this level indicates that the market is once again assessing the commitment of long-term buyers. From a structural analysis perspective, the convergence of the channel low, value area low, and historical support constructs one of the most robust technical support levels within the current market environment.

Currently, the retest mirrors the previous bottom quite closely, where prices fell to the lower boundary, absorbed liquidity, and then surged toward the upper area of the channel. The fact that Bitcoin has not dipped below this structural level shows that buyers are actively defending it. Market players typically view such recurring retests as a potential sign of an accumulation phase on a higher timeframe.

If Bitcoin manages to close above the $90,000 support, the potential for a rotational rally increases. The next significant target in this trading channel is $135,000, which serves as a resistance level that previously constrained the upper price limit. A move towards this area would keep Bitcoin firmly positioned within the established high-time-frame range, continuing the broader structural trend of oscillating between the channel low and high.

Nevertheless, if Bitcoin falls below this support, it would indicate a change in market dynamics, invalidating the current bullish setup. For now, the defense of this level remains effective, supporting the likelihood of a reversal.

Anticipating Future Price Movements

If Bitcoin can maintain its position at $90,000, the probability of a rally towards $135,000 becomes increasingly compelling. A drop below the channel low would undermine the bullish outlook; however, retaining this support heightens the chances of a significant price reversal.