Bitcoin’s Next Big Move: Key Support Holds the Fate of $120K or $50K

• Bitcoin’s uptrend depends on holding key support; a bounce could push it to $120K, while a break may lead to $50K-$55K.
• The 100-week moving average acts as crucial support, with Bitcoin testing the lower limit of its ascending channel.
• Selling pressure at resistance hints at possible weakness; failure to hold support may trigger further downside.

According to Captain Faibik, Bitcoin’s trajectory depends on its ability to hold support. A bounce from this zone could send it soaring to $120K. However, a break below could trigger a drop toward the $50K-$55K range. While the sentiment remains bullish, a weekly close below the 50-week moving average at $76K may shift the outlook to bearish.

Bitcoin’s Price Action and Market Structure

In a bullish pattern, Bitcoin CME Futures is trading in an ascending channel. Price has been making higher highs and lower lows since late 2022, reasserting the overall trend upwards. Bitcoin did see a fall, losing 5.34% to $82,590 after being rejected around the upper edge of the channel.

With its upward trend and reinforcement of long-term optimistic attitude, the 100-week moving average continues to be a crucial support level. The lower limit of the ascending channel, a crucial area that has sustained previous corrections, is currently being tested by Bitcoin. The uptrend’s continuation might be confirmed by a bounce from this level. On the other hand, a break below can signal a change in momentum and possibly more downward pressure.

Critical Levels and Market Sentiment

Bitcoin’s resilience is demonstrated by its historical record, which shows a consistent return after corrections. In early 2022, it reversed from a falling trend and began a systematic rising ascent. Despite intermittent consolidations, Bitcoin maintained its upward trajectory in 2023 and the first half of 2024.

Additionally, the price stays within support and resistance levels, maintaining the market structure. The current drop, however, points to heightened selling pressure close to the channel’s upper boundary. Bitcoin may indicate possible weakness and lead to additional drops toward lower levels if it is unable to maintain the current level of support.