Bitcoin Price Targets $78,000 Following Rejection at Key Level

Bitcoin's price has experienced a solid rejection from the critical $94,000 level, which has shifted market momentum and increased the likelihood of a move toward the next support area at $78,000.

Key Takeaways

Bitcoin has rejected a crucial pivot at $94,000, leading to a potential decline toward $78,000.
Multiple failed attempts to surpass the resistance indicate a weakening bullish trend.
Volume analysis shows weak buying and strong selling pressure, supporting a bearish outlook.
Without reclaiming the $94,000 level, further declines appear likely.

Bitcoin has rejected from a key pivot, opening a move for a deeper correction

Bitcoin is in a deeper corrective phase after attempts to break past the $94,000 resistance failed. This rejection suggests that Bitcoin may soon revisit lower support levels, particularly the $78,000 region, which is now being closely monitored by traders.

Technical Analysis of Bitcoin's Price Movement

Bitcoin price eyes $78,000 after confirming rejection from key pivot - 1
BTCUSDT (4H) Chart, Source: TradingView

Throughout the week, Bitcoin engaged in multiple tests of the $94,000 resistance zone, a level supported by various technical indicators. The most significant of these is the channel high resistance, which has consistently rejected price advancements in past cycles. Each attempt to break through this resistance resulted in a sharp sell-off.

The price repeatedly approached the upper boundaries of this trading channel, only to be pushed down sharply, signifying another failed effort to gain upside momentum. This development comes during a quiet period of de-leveraging, as indicated by a decrease in Bitcoin futures open interest, suggesting reduced speculative positions amidst persistent resistance.

Following the confirmed rejection, Bitcoin has begun to move lower toward the channel midpoint, which aligns with a previously established swing low. This midpoint typically serves as an important technical checkpoint during corrective phases.

If Bitcoin's price breaks below this midpoint, the next critical level of interest is the high-time-frame support located near $78,430. This area has ample liquidity and has historically acted as a structural anchor in previous market fluctuations.

From a market structure perspective, this recent rejection can be seen as an additional lower high in the ongoing bearish trend. The rally that occurred earlier this week now appears to be a false recovery, often referred to as a "dead-cat bounce."

Volume trends provide further evidence of a bearish outlook. During the attempts to break out above resistance, buying activity was weak, contrasting with increased selling pressure each time Bitcoin approached the resistance zone. This disparity is typical of a failing rally, where a lack of strong purchasing interest prevents sustained upward movement.

Momentum indicators are also showing signs of reversal. With the rejection firmly established and downward pressure intensifying, Bitcoin's price is trending back toward its channel's center. If bearish momentum continues to grow, the chances of testing the $78,000 support region significantly rise.

Reclaiming the $94,000 level is crucial to negate this bearish sentiment, but the current market structure does not exhibit any immediate signs of strength. Current market conditions resemble early 2022, with similar weakening momentum and structural breakdowns amplifying the risk of further declines.

Future Price Action Expectations

Unless Bitcoin can reclaim previous breakdown levels with significant volume, the price is expected to continue its downward trajectory toward the $78,000 support zone. A visit to this area may prompt a temporary bounce, but any meaningful recovery hinges on breaking back above the channel high resistance. Absent this, the prevailing trend will remain bearish.

As of now, Bitcoin has seen an 8.5% decrease year-to-date.

Bitcoin price eyes $78,000 after confirming rejection from key pivot - 2
Source: CoinGecko