Bitcoin’s price trajectory is showing signs of a potential correction, with technical analysis pointing to a crucial support test at $99,000. As recent price action below $105,000 confirms growing bearish pressure, traders are closely monitoring key support levels that could determine BTC’s next major move.
Technical Analysis Points to Short-Term Bearish Pressure
According to respected TradingView analyst MelikaTrader94, Bitcoin is displaying clear signs of weakening momentum after reaching its recent all-time high of $112,000. The formation of a descending trendline on the 4-hour chart has become a significant resistance barrier, with multiple rejections suggesting bears are gaining control of short-term price action.
Critical Support Levels to Watch
Currently trading at $106,432, Bitcoin faces immediate resistance at the descending trendline. A rejection here could trigger a correction toward the psychological $99,000 support level. This potential pullback aligns with recent whale accumulation patterns, suggesting large investors may be preparing to buy the dip.
Bullish Case Remains Strong Despite Short-Term Weakness
While the immediate outlook appears bearish, the larger technical structure remains bullish. A successful test of the $99,000 support could set up Bitcoin for its next major rally, with potential targets extending beyond $114,000. This scenario is supported by on-chain metrics showing decreased liquid supply, which historically precedes significant price appreciation.
Key Factors for Traders
- Current resistance: $106,500 descending trendline
- Critical support: $99,000
- Volume profile: Decreasing on rallies
- RSI: Showing bearish divergence on 4H timeframe
FAQ Section
What’s causing Bitcoin’s current price weakness?
Technical exhaustion after reaching all-time highs, combined with profit-taking and decreasing buy-side pressure, has created short-term bearish conditions.
Could Bitcoin fall below $99,000?
While possible, strong institutional buying interest and technical support make this level likely to hold as a bottom for any correction.
What’s the timeline for potential recovery?
Based on historical patterns, consolidation periods typically last 1-2 weeks before a decisive move occurs.