Bitcoin Breaks $90K Support; Volatility Surge and $50K Risk Loom

Bitcoin faces critical support test as volatility dips to extreme lows amid bear market signals

  • Bitcoin dropped below the $90,000 support level as its weekly trading closed.
  • Price volatility has reached “extreme” lows, suggesting an imminent breakout.
  • Potential for a breakdown to the $73,700–$76,500 range or a rise to $95,000 and possibly $100,000.
  • Technical analysis indicates a bear market phase with a possible decline toward $50,000.
  • Bitcoin’s price is constrained by dynamic resistance from moving averages and low buying volume.

Bitcoin (BTC) fell below the $90,000 support level leading up to its weekly close as traders monitor for a significant price move. The cryptocurrency experienced flat price action over the weekend, indicating strong horizontal resistance nearby and very low volatility.

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Data from Cointelegraph Markets Pro and TradingView show Bitcoin trading in a tight range without clear upward momentum. Analyst Aksel Kibar noted on X that the market is in an “extreme low volatility setup,” which often precedes a strong directional move. He suggested two scenarios: a breakdown from the bear flag pattern potentially lowering BTC to $73,700–$76,500, or a rebound that breaches $94,600 with an aim toward $100,000 within a broadening chart pattern, as described in his recent post here.

Additional insights from trader Ted indicate that the $90,000 level remains a pivot point, with upward momentum requiring a reclaim of $92,000–$94,000. Losing support below $89,000 could prompt a drop to the $85,000 range, while Crypto Tony advised focusing on trading the breakout from the narrow $90,600–$89,800 range, mentioned on X as well.

Onchain analytics from CryptoQuant warn that the bear market phase has begun. Contributor Pelin Ay detailed in a Ethereum-Technical-Analysis” rel=”noopener nofollow”>Quicktake blog that downward-sloping simple moving averages act as dynamic resistance, with selling volumes outweighing buying volumes during recovery attempts. This behavior supports a bearish market structure and weak upward conviction.

While Ethereum (ETH) has shown a stronger recovery from lows, the analysis suggests limited optimism for Bitcoin in the short term. The bear market phase may deepen, potentially driving Bitcoin prices toward the $50,000 level before any substantial upward movement.

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