Bitcoin Dips Below Crucial Support Level — Is a Final Sell-Off Ahead?

Bitcoin has recently dropped below an important support level, prompting concerns that the market may face a significant sell-off. With persistent selling pressure, traders are keeping a close eye on critical levels to determine if another downward movement towards lower support is likely.

Key Takeaways

Bitcoin has fallen below a significant support level, raising concerns about potential continued sell-offs.
The crucial resistance zone is identified between $85,200 and $86,200, with bearish pressure still dominating.
A successful reclaim of this zone could signal a reversal in trend, while a failure may lead to a drop toward the $72,300–$75,300 range.
The opening of a CME gap this weekend may lead to increased volatility, with $81,800 serving as a critical secondary support level.

Bitcoin

Price Faces Another Rejection

MakroVision Research recently noted on X that Bitcoin has encountered strong rejection, leading to a decisive drop below multiple support levels. Currently, Bitcoin is trading back within the range of previous lows and remains below an essential resistance zone, which lies between $85,200 and $86,200. This indicates that bearish sentiment is still prevailing in the market.

In the very short term, there are early indications of a potential rebound. However, unless Bitcoin can decisively reclaim and hold the zone between $85,200 and $86,200, this movement is likely just a short-term bounce rather than the beginning of a significant trend reversal. The wider short-term downtrend will persist as long as prices remain below this critical area.

Bitcoin
BTC remains below vital support levels | Source: Chart from MakroVision Research on X

From a tactical viewpoint, the area between $85,200 and $86,200 is now a pivotal battleground. A successful reclaim and maintenance of price above this level would be the first clear sign that selling pressure is diminishing. Such a move could pave the way for price stabilization and a potential relief rally.

Conversely, if the attempt to reclaim this zone fails, the likelihood of further downside acceleration will increase. In such a scenario, attention would shift to the range of $72,300 to $75,300, a notable support area with historical significance that may act as a potential reversal point if the market undergoes another round of capitulation.

CME Gap Opens: What to Expect for Bitcoin This Weekend

Crypto analyst MartyParty recently highlighted a CME gap that is about to open, which is expected to be filled by Sunday evening. This development could lead to potential short-term volatility, prompting traders to monitor key technical levels and liquidation trends closely.

Several scenarios could unfold in the coming days. One possibility includes the liquidation of remaining leveraged long positions, with the lowest 25x Binance liquidation point currently situated around $79,350. This could potentially complete the classic Wyckoff Spring pattern. Another scenario suggests a retest of secondary support at $81,800, which could serve as a temporary floor for Bitcoin's price action.

If the $81,800 support level holds, Bitcoin might trade sideways or attempt to move towards its primary support level, now acting as resistance at $84,800. The most likely scenario indicates a rise through $84,500 towards $86,463, followed by a reversion back to $84,500 on Sunday evening as the CME gap is filled, completing the short-term Wyckoff accumulation setup.

Bitcoin
BTC trading at $83,121 on the 1D chart | Source: BTCUSDT on Tradingview.com