After a short-lived recovery, Bitcoin (BTC) is attempting to bounce from a crucial level to reclaim the $110,000 support. However, some analysts suggest that a retest of the $90,000 level could be the next stop for the cryptocurrency.
Bitcoin lost the $110,000 support for the first time in nearly two months, dipping below the lower boundary of its local range, between $108,700-$119,500. The flagship crypto hit an eight-week low of $107,900 on Friday afternoon, raising concerns for its short-term rally among investors.
This time, Bitcoin is showing the same setup that foreshadowed the end of the last cycle, with price making higher highs while the RSI makes lower lows, Martinez explained.
Meanwhile, he added that the recent death cross in the Bitcoin MVRV Momentum indicator “signals a macro momentum reversal from positive to negative. This is a historically reliable warning sign of cyclical tops.”
The analyst affirmed that the on-chain evidence suggests Bitcoin’s top may be in, at least temporarily, with bias shifting bearish and a risk of retesting lower support levels.
After peaking in late 2021, the flagship crypto lost its local range above the $58,000 mark, which led to a retest of the macro range’s mid-zone and an eventual drop below the macro range’s lows in the coming months.
If BTC loses its immediate technical floor, the price could retest the $104,500 and $97,000 support levels, risking a drop to the mid-zone of the macro range, around the $94,000 area.
“In this scenario, Bitcoin will start a reversal after 3-4 weeks and a new ATH by November/December,” Ted concluded.
As of this writing, Bitcoin trades at $107,947, a 7.5% decline in the weekly timeframe.
