Bitcoin's Pivotal Moment: Weekly Support Remains, Yet Momentum Slips

Bitcoin is currently in a crucial make-or-break stage, as the price hovers around an essential weekly support level, even though momentum is decreasing. While Bitcoin is staying above a key confluence zone, frequent rejections at higher levels indicate that buyers are losing their grip. As macroeconomic pressures mount and liquidity levels remain untested, Bitcoin’s next move could determine if it stabilizes or faces a significant drop.

Key Takeaways

Bitcoin is at a critical juncture, clinging to weekly support while facing reduced momentum.
A breakout above $88,000 is needed to shift the current short-term downtrend.
The recent rejection at $93,000 indicates further potential declines could occur.
The $86,000 support zone remains crucial, supported by the 100-week moving average.
A potential decline toward the $70,000 level could present a favorable buying opportunity.

Overall, Bitcoin's upcoming moves are vital to watch, as they could significantly influence its future trajectory.

Bitcoin

Short-Term Downtrend Maintains Control Amid Rejections

Crypto analyst Michael Van De Poppe recently pointed out that Bitcoin has encountered a notable rejection at a significant resistance level. This setback indicates that the short-term downtrend is still in effect on lower timeframes, confirming that current selling pressure surpasses buying momentum.

For a reversal in this short-term sentiment, Van De Poppe anticipates a clear breakout above the $88,000 mark. A successful breach above this level would send a strong and clear message to the market, suggesting the end of the corrective phase and the potential onset of upward momentum.

Bitcoin BTC price outlook considerably leaning downwards | Source: Chart by Michael Van De Poppe on X

If buyers cannot secure this crucial breakout, it is likely that the price will target liquidity levels further below, specifically aiming for a test at $83,000. Should this level not hold, a further decline to the $80,000 mark would activate stop-loss orders.

Moreover, Van De Poppe linked the technical analysis to the overall economic landscape. With numerous major macroeconomic events scheduled for the week, including FOMC-related updates, he believes the market may undergo substantial volatility, potentially hitting one of the anticipated downside liquidity levels.

Rejection at $93,000 Slows Momentum, Yet Weekly Structure Holds Strong

In a recent weekly chart analysis, Crypto Damus reported that Bitcoin experienced a strong rejection at the $93,000 resistance level. Nonetheless, price action appears constructive for now, as Bitcoin remains above the vital $86,000 weekly support zone. This area is further supported by the key 100-week moving average, making it a crucial level to monitor in the short term.

Despite the current structure being stable, there is room for deeper declines. Crypto Damus notes that a full retracement toward the rising wedge breakdown target cannot be dismissed, which aligns with the April low near the $78,000 region. A move down to this zone would indicate a more pronounced corrective phase within the overall cycle.

Looking ahead, a deeper bear-market-style retest could potentially create a more appealing long-term buying opportunity. The $70,000 level is highlighted as a high-conviction buying area, should the market continue its pullback.

Bitcoin BTC trading at $86,589 on the 1D chart | Source: BTCUSDT on Tradingview.com