Bitcoin buyers made a strong attempt to breach the $94,000 resistance once more last week, but the price quickly retreated from this level, ending the week at $90,891. Sunday’s close produced a doji candle, signaling indecision and a possible shift back in favor of the bears. The bulls appear to be sluggish once more, struggling to gain the momentum needed to break through resistance levels. Bears are firmly in control as we head into this week. Expect them to attempt to drive the price below the $87,000 support level in a bid to challenge the $84,000 support once again.
The bulls are eyeing the $87,000 level for support, hoping it will hold as bears attempt to maintain their downward momentum. $84,000 remains a solid support level beneath, although it may diminish with additional downward pressure. If the bears succeed in breaking this support, we can expect the price to swiftly decline towards the low $70,000 range, with a close beneath $68,000 necessary to confirm the loss of this support level. Bulls are eyeing the 0.618 Fibonacci retracement level at $58,000 as a potential area to regain momentum below this zone.
Bears are poised to defend the $91,400 level as resistance in the near term. The $94,000 resistance level has proven effective thus far, but it will face significant pressure if bulls can rally to push the price back up to that point. Above $94,000, a resistance zone is identified, extending from $98,000 to $103,500. Above here, we encounter another resistance zone ranging from $106,000 to $109,000, aligning with the 0.618 Fibonacci retracement from the decline from the peak down to $80,000. Wounded bulls are seeking assistance to maintain their momentum this week. Bears are expected to drive the price down to $87,000 early in the week, with the potential to dip below that level. Bulls are poised to prevent the price from closing any day under $87,000. If the bears secure a daily close beneath this level, the $84,000 support will face significant pressure, and the bulls will require buyers to come forward with substantial volume to maintain this support level once more.
Market sentiment: Bearish – Following a weekly shooting star doji candle close, the momentum of the bulls has diminished. The bears have gained a slight edge as the week begins. Price action is likely to exhibit volatility and stay within a defined range in the coming weeks. Bulls are eyeing a close above $94,000 to push through this range and gain upward momentum, whereas bears are targeting a close below $84,000 to attempt a breakdown beneath this critical support level. The range between $94,000 and $84,000 has emerged as a neutral zone, setting the stage for a potential tug-of-war between bulls and bears. Neither side is set to establish definitive control over the price movement until one of these thresholds is breached.