Bitcoin’s price recently dipped below a crucial resistance level, sparking concerns about a potential market crash. Let’s break down the different perspectives.
A Bearish Outlook?
Crypto analyst Rekt Capital pointed out that Bitcoin closed below a significant weekly resistance around $108,890. This, he argues, suggests a possible downward trend, potentially forming a “lower high” resistance around $107,720. To avoid this bearish scenario, Bitcoin needs to reclaim $108,890 as support. Rekt Capital previously highlighted how a close above this resistance would have been historically significant, potentially launching Bitcoin into a new uptrend and new all-time highs. However, the current price drop, even after reaching an intraday high of $107,970, has some analysts worried, especially as it’s now at risk of breaking below the $106,800 support level. Analyst Kevin Capital considers this lower level a “danger zone.”
Still Room for Growth?
Despite the bearish outlook, other analysts remain optimistic. Rekt Capital, referencing historical bull market cycles, suggests Bitcoin might still have some upward momentum, possibly lasting another two to three months.
Analyst Titan of Crypto also sees a positive outlook, noting a strong weekly market structure with higher highs and higher lows. He points to the Relative Strength Index (RSI) approaching its trendline, suggesting a potential rally to as high as $140,000 between September and November. This aligns with Stockmoney Lizards’ prediction of Bitcoin reaching $145,000 by September, based on bullish indicators in the current price correction.
The Current Situation
Currently, Bitcoin is trading around $106,800, slightly down in the last 24 hours. The market is clearly divided on whether this is a temporary dip or the start of a significant downturn.
