- Bitcoin must stay above $83.6K or drop to $81K, with $89K as resistance.
- Heavy breakdown volume faded at resistance, signaling market indecision before buyers enter.
- Bitcoin’s higher highs help, but falling below $81K may trigger bearish sentiment.
Bitcoin price action is at a crossroads, says pundits as they watch it trade at about $83.6K following a breakout. The asset just broke out of an ascending triangle, a bullish chart pattern, and is currently backtesting the level to determine where the price goes next.
Bitcoin’s Breakout and Key Support Levels
Breaking down the breakout, Daan Crypto Trades pointed out that the break of Bitcoin above $83.6K was a sentiment shift, and this level becomes a very critical support zone. He was looking for a potential run-up towards $85K and more if Bitcoin is able to sustain above this level. He also broke down that in case of a breakdown, there would be a retracement to the $81K-$82K zone.
Source: Daan Crypto Trades
Examining market action, he noted that there is heavy participation between the $83.6K-$84K zone, where buyers and sellers are battling for control. If Bitcoin continues with upside momentum, he noted the next resistance levels between $87K and $89K. Comparing with historical breakout patterns, he emphasized steady buying pressure would be required to sustain a bullish trend.
Market Trends and Volume Analysis
Observing the trend in the market, Daan Crypto Trades noted volume increasing at the time of the breakout and then falling off at resistance. The observation explained that this trend suggests uncertainty within the market as the traders await confirmation to initiate new positions. He further noted that an enormous flood of buying volume is required to keep the trend of Bitcoin intact.
Bitcoin’s price continued making higher lows in support of its bull trend. However, he warned that a drop below $81K would invalidate the pattern of an ascending triangle and expose it to bear risks.
Bitcoin retests support amid momentum uncertainty
Providing additional analysis, Trader Tardigrade looked at Bitcoin’s retest of its breakout level at $83.6K. Considering market trends, he noted that remaining above this level would confirm the uptrend, with buyers actively defending this level.
Source: Trader Tardigrade
If the buyers retain control, he added that Bitcoin can create a stronger bullish pattern, driving it to new highs. Market commentators are paying close attention to whether Bitcoin will continue the momentum or get rejected at this critical technical level.
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