Bitcoin's recent price action is flashing warning signs, as technical indicators suggest a potential downtrend that could see the cryptocurrency lose its critical six-figure valuation. A closer look at the weekly chart reveals patterns consistent with previous market corrections, raising concerns about the immediate future of the digital asset.
Technical Indicators Sound Alarm
The weekly chart of Bitcoin is signaling caution, primarily through the behavior of its Bollinger Bands. After testing and rejecting the upper band near the $124,000 mark, Bitcoin has begun a retreat, sliding back towards the midline, currently around $107,000. This rejection is particularly significant because the $100,000 level acts as a vital technical and psychological support for the entire cryptocurrency market. Past instances of Bitcoin hitting the top of this channel have frequently been followed by subsequent price drops.
Looming Corrective Phase and Critical Levels
Should the midline support fail to hold, the next major area of interest lies at the lower Bollinger Band, positioned near $88,000, which would signify a loss of the six-figure price point. This pattern of rejection and subsequent decline has been consistent historically, with similar moves in March and July previously signaling extended drawdowns. The current technical weakness is further compounded by broader macro uncertainties, creating a fragile environment. The $100,000 level is now a pivotal dividing line; a weekly close below this threshold would confirm bearish signals from the Bollinger Bands, drawing market attention to the $88,000 mark as the next critical support to watch.
