Bitcoin faces a crucial moment as it tests the $94,645 support level. The leading cryptocurrency has declined 2.24% over the past week, with mounting uncertainty in the market. This price action could determine BTC’s next major move.
Market Analysis
February has proven challenging for Bitcoin traders. The cryptocurrency has lost 8.59% in the past month. Recent price action shows BTC struggling to maintain momentum above $97,800, its February 14 high. The market now sits at a critical juncture.
Technical Outlook
Elliott Wave analysis suggests two possible scenarios. The current movement might represent Wave 2 correction, setting up for a powerful Wave 3 rally. This bullish case depends on holding the $94,645 support. A bounce here could trigger a surge toward $103,000.
However, breaking below $94,645 could intensify selling pressure. The key danger zone lies at $93,450. A drop below this level would likely trigger further decline to $91,000 or lower.
Market Sentiment and Volume
Trading volume has surged 56.60% to $49.03 billion, indicating increased market activity. The Fear & Greed Index reads 49, showing neutral market sentiment. This reflects the current wait-and-see approach among investors.
Future Projections
Despite current uncertainty, analysts maintain optimistic forecasts. CoinCodex predicts Bitcoin could reach $108,429 within five days and potentially $131,693 next month. These projections assume the critical support levels hold.
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The next few days will prove crucial for Bitcoin’s price direction. Traders should watch the key support levels closely and manage their risk accordingly.
Tags: Bitcoin, Technical Analysis, Market Support, Price Action, Trading Volume
Source: NewsBTC