Bitcoin is under renewed selling pressure after sliding more than 5% from recent highs, pushing the cryptocurrency below the key $90,000 level. The drop has forced BTC to retest a crucial support area, leaving traders uncertain whether a rebound is near or a deeper correction is looming.
The cryptocurrency briefly fell to the $88,000 zone on Friday after losing its grip on the recently reclaimed $90,000 barrier. The decline marks another setback for Bitcoin’s recovery from the November market correction, which dragged the price down to a seven-month low of $80,600.
Over the past two weeks, Bitcoin has largely traded within a macro re-accumulation range between $82,000 and $93,500. The asset attempted a breakout earlier this week, reaching a multi-week high of $94,150. However, momentum faded, and BTC slipped below its monthly open, returning to the lower end of the local range.
Analysts Expect a Critical Bounce at $88K–$89K
Analyst Ted Pillows highlighted that Bitcoin has repeatedly failed to reclaim the $94,000 resistance, stating that price action “wants to go lower here before another breakout attempt.” He believes a rebound from the $88,000–$89,000 support range remains probable.
Crypto analyst Altcoin Sherpa echoed similar concerns, suggesting the current retest will determine whether the recent rally was simply forming lower highs or if Bitcoin still has the strength to climb toward the $100,000 area. He outlined two possible scenarios:
• BTC rebounds into the $93,000–$94,000 resistance zone, or
• Bitcoin continues to consolidate beneath resistance before sliding toward November’s lows.
Pullbacks Are Becoming Shallower, Says Rekt Capital
Analyst Rekt Capital noted that Bitcoin continues to face rejection at the upper boundary of the range, but emphasized that investors should watch whether each rejection becomes shallower. If the pullback remains milder than previous ones, the resistance barrier may weaken over time, increasing the likelihood of an eventual breakout.
He also pointed out that the macro downtrend continues to serve as a major structural resistance that Bitcoin must ultimately break. As long as BTC closes the week above the range lows, its larger consolidation structure remains intact.
Even a dip into the ascending two-week support level or a move toward $86,000 could still qualify as a “shallower correction” compared to prior declines, maintaining the broader pattern.
At the time of writing, Bitcoin trades at $89,400, down 2.9% over the past 24 hours.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions
