- Bitcoin (BTC) fell around 2% to $84,035, slipping below the key $85K level as the momentum weakened.
- The bull market support band is climbing with price, but a retest could be a crucial test for the broader uptrend.
The largest and dominant asset, Bitcoin (BTC), is entering a critical phase after slipping below the $85,000 mark and losing roughly 2% over the past 24 hours. The token is currently trading at around $84,035, with its daily trading volume settled at $32.867 billion.
In the past 24 hours, Bitcoin traded between $83,647 and $86,648, showing a wide intraday range. Over the past seven days, BTC has moved between $83,022 and $87,085, with the broader consolidation zone and key levels traders are watching.
The decline came as late long positions were flushed from the market, with around $500 million in long positions liquidated. However, some of that capital appears to have moved back into the market, keeping leverage elevated.
Bitcoin’s recent price action is unfolding inside a tight triangle, with the latest move bouncing from the lower trendline. A sustained hold of this structure could still leave room for a breakout toward higher levels.
Another factor is Bitcoin’s bull market support band. As the band rises alongside price during a bull cycle, BTC has historically tended to revisit it. Such retests can trigger bearish sentiment. They can also become important areas for buyers if the broader uptrend remains intact.
For bulls, reclaiming $85,000 would help restore short-term momentum. If BTC fails to recover the level and selling pressure persists, the lower end of the recent range could come back into focus.
Bitcoin’s Key Support and Resistance Levels
If the bearish grip intensifies, the BTC price could fall to the nearest support range at $83.9K. Assuming the sellers continue to dominate, additional downside pressure is applied, and it is likely to trigger the death cross to emerge and gradually send the price down, below $83,821.
On the other hand, with Bitcoin’s market trend taking a bullish turn, the price could rise to the resistance level at $84.1K. As the upside trajectory gains more traction, potential bulls would initiate the formation of the golden cross, and the price may gradually climb above $84,269.
BTC Momentum Weakens: More Losses Ahead?
The four-hour technical analysis shows that the Moving Average Convergence Divergence (MACD) line is positioned below the zero line. Also, the signal line remains above zero; it shows mixed momentum in the Bitcoin market.
The broader trend still has some positive strength, but the short-term momentum is weakening. Traders may watch for a move back above the signal line for signs of a recovery, or fall further below zero if selling pressure builds.
Besides, the daily Relative Strength Index (RSI) reading resting at 35.32 shows that Bitcoin is facing weak buying momentum. Moreover, it is getting closer to the oversold territory within the market.
Notably, the asset is not technically oversold yet, as that is generally considered below 30, but the value indicates that the sellers currently have the upper hand.
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