- Bitcoin nears $100,480, testing a vital support zone as traders watch for potential reversals or further declines.
- Analysts suggest BTC’s dip could grab liquidity before aiming higher, with $99,400 as a critical level to monitor.
- A break below $99,400 could push BTC toward $92,000-$94,000, testing broader market sentiment and buyers’ resilience.
Bitcoin (BTC) is trading near $100,480.38, reflecting a 0.87% decline as bearish pressure dominates the market. Analysts highlight that BTC is approaching a key support zone after a week of range-bound activity. This movement could present liquidity opportunities for bulls and bears.
Key Support Zones Under Scrutiny
The primary support zone, labeled Support Zone 1, lies between $99,400.68 and $101,500. This area has historically shown strong buying interest. BTC recently tested this zone after experiencing lower highs and a steady downtrend. Besides acting as a potential reversal point, it aligns with the 100% Fibonacci retracement level, reinforcing its importance.
Source: CrediBull Crypto
A descending trendline within Support Zone 1 suggests ongoing bearish dominance. However, the price remains above the zone’s lower boundary, leaving room for a possible rebound. Furthermore, analysts note that if this zone fails to hold, a retest of Support Zone 2 becomes likely.
Support Zone 2, positioned between $92,000 and $94,000, has historically served as an accumulation area. Hence, traders are monitoring this zone closely for potential price stabilization if BTC breaks lower.
Broader Market Implications
BTC’s broader market structure reflects a high of $110,000 before the current retracement. This decline, marked by bearish candlestick patterns, highlights weakened momentum. Moreover, price action indicates a battle for liquidity, with traders eyeing both ends of the current range.
Analyst CredibleCrypto explains that BTC’s dip toward Support Zone 1 may be a necessary “liquidity grab.” He emphasizes that taking liquidity from this level could set the stage for a move toward range highs. Additionally, the confluence of support levels and Fibonacci retracement signals an inflection point for market participants. Failure to hold Support Zone 1 could shift focus toward Support Zone 2. This scenario would likely test broader market sentiment and buyers’ resolve.
The post Bitcoin Tests Crucial Support at $99,400 Amid Bearish Market Moves appeared first on Cryptonewsland.
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