The onslaught continues as the Bitcoin price has failed to make a meaningful bounce, and the bears have kept the price suppressed below $110,000 for the majority of the weekend. This has already triggered fear in the market, with the Fear and Greed Index falling into the Fear territory, marking a new 5-month low. From here, the next direction of the Bitcoin price carries a lot of weight for the entire market, and the point at which the cryptocurrency is sitting is a decision-making point.
Bitcoin Price Falls Into Critical Junction
According to crypto analyst Weslad, who posted an interesting analysis on the TradingView website, the Bitcoin price is now sitting at what could be considered a make-or-break level. This critical junction lies at a major supply zone, and with the strong supply at this point, a rejection could quickly follow.
The crypto analyst explains that the Bitcoin price is currently still holding above the key demand zone of $106,269-$108,715, which is still very bullish for the price. In fact, this has been historically known as a point where the Bitcoin bulls have often held, supporting and triggering the next wave of uptrends.
This means that the bulls will have to keep holding this demand zone if they want to maintain the primary uptrend. In the case of a successful hold and a subsequent bounce and breakout with strong momentum, it could put the Bitcoin price on a path to clearing its all-time high above $124,000.
Moving further away from this point, the crypto analyst believes it is possible that this bounce could send the Bitcoin price rallying toward the $135,627-$139,616 target zone. This would be an over 20% increase for the cryptocurrency.
Bears Could Still Take Control
While it does seem that the bulls are holding the primary uptrend while keeping the Bitcoin price above the demand zone of $106,269-$108,715, there is still the possibility of bears taking over from here. Weslad points to the recent rejection from the $117,000 supply zone as proof that sellers are still very much active in the market.
If the selling were to continue, then the pressure could press down the Bitcoin price further, putting the key demand support at risk. If the bears were able to successfully break below the demand zone of $106,269-$108,715, then the crypto analyst expects the price to continue to struggle.
A downtrend from here could trigger another 10% crash, and such a crash could see the Bitcoin price moving straight toward $98,384. This break would mean Bitcoin losing the $100,000 psychological level for the first time in more than three months.
Featured image from Dall.E, chart from TradingView.com
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