Bitcoin Faces Critical Test as $96K Support Holds the Key to $99K

•  Bitcoin is struggling below key VWAP levels and needs to regain strength.
•  If Bitcoin flips $96K to support it, it may surge toward $99K in the days ahead.
•  Failure to hold $96K could trigger a sharp drop, leading to heavy selling.

Bitcoin ($BTC) is currently in an intriguing position, navigating below its major VWAP (Volume-Weighted Average Price) levels from the past three months. Analyst Dom (@traderview2) highlighted this technical situation on February 18, 2025, underscores a critical point in Bitcoin’s price trajectory. 

Trading beneath all major VWAPs, Bitcoin has also maintained its clear uptrend for the past several weeks, setting the stage for an imminent decision. According to Dom, this price region is crucial, as it marks either the potential for a major breakdown or a strong deviation in price.

Dom described a situation that indicates possible sharp correction if Bitcoin does not regain previous VWAP levels. The importance of this price action is that it has the potential for mass breakdown, wherein Bitcoin will not reclaim these important levels, with a high chance of mass liquidation. On the flipside, if the price moves up and clears certain resistance levels, that would lead to a strong bullish move with Bitcoin’s price functioning higher.

Market Dynamics: VWAP and Trend Analysis

When viewed from a technical perspective, Bitcoin’s charting history shows some significant indicators pointing toward a crucial time. The price chart shows that Bitcoin has remained below every significant VWAP level for the past three months, and this behavior feeds the current bearish pressure. 

The chart also indicates that BTC might have recently found some support on an ascending trendline; this trendline is somewhat holding. However, if the trendline fails as support and Bitcoin breaks below, a breakdown may rapidly occur, leading to an even larger-scale correction.

Dom believes that failing the trendline would place Bitcoin in a position to break below multiple major support zones, with $96,000 being one such critical level. Should Bitcoin fall below this level, the market could see a deeper correction as it finds support around lower levels. The green and orange bands on the chart represent the VWAPs and show how Bitcoin has been pretty much moving sideways in a narrow range, which indicates that any strong break above these 

Potential Upside: The $99k Target

If Bitcoin manages to flip $96,000 from resistance to support, it opens up a potential upside. In this case, Dom suggests that the next target for Bitcoin is approximately $99,000, which could act as the next resistance point. A move toward this level would represent a recovery from the recent price consolidation and a break from the trend of being trapped below key VWAP levels.

The $99k zone is not just a psychological level but also a technical target, supported by the chart’s structure. However, as with all technical analysis, Dom warns that the market is at a crucial juncture where deviations could occur in either direction, depending on how Bitcoin interacts with these key levels.