- Bitcoin may fall to $91K if weak trends continue and its momentum does not improve.
- FTX’s repayment could bring new changes to the market that might increase selling.
- Traders are obliged to watch $97K resistance and $91K support as market swings unfold.
Bitcoin is trading in a fine line between consolidation and an impending breakdown, with the weekly chart revealing a probable shift in market sentiment. Trading at $95,699 at press time, BTC has lost 0.45% in the past week, with a high of $97,014 and a low of $95,101.
While the market has held above some support levels, the formation of a potential Head and Shoulders pattern signals an impending correction. This setup and weakening indicators suggest that Bitcoin might soon plunge toward the $91,000 region, sweeping the past week’s low.
On the weekly timeframe, BTC has been consolidating just below the 50% Fibonacci retracement level at $97,542, failing to sustain a breakout above resistance zones. The price action hints at a topping structure, with the MACD flipping bearish as the signal line moves above the MACD line.
RSI at 60.30 reflects a reduction in its upward strength, reinforcing the probability of a downside continuation. The previous bullish impulse, which drove the token past $100,000, shows signs of exhaustion, raising the likelihood of a drop toward $90,286 if the support around $95,000 fails to hold.
Bitcoin Faces Heavy Resistance at $97,500 as MACD Turns Bearish
BTC has been struggling to reclaim lost ground, battling obstacles at the 38.2% Fib of $96,809. The market trades below the 50% return at $98,653, signaling further weakness. If the downtrend extends, the primary target is $94,527 (23.6% Fibonacci), which aligns with key structural support levels.
Indicators reinforce the bearish outlook. The MACD histogram is tilting negative at -192, suggesting increasing downward pressure. RSI on the daily chart stands at 42.27, well below the neutral 50 level, signaling bearish momentum. If RSI dips further into oversold territory, a correction towards $91,000 becomes increasingly probable.
Key Fibonacci Levels Suggest a Potential Drop to $79,000
The confluence of retracement levels, weakening indicators, and price action suggest that BTC could be poised for a correction. If buyers fail to reclaim levels, the token could retest the $79,956, marking a correction from recent highs. However, if BTC finds assistance around $91,000, this level could act as a demand zone for a potential rebound.
As it stands, Bitcoin is walking on a tightrope. The market remains at a premium on the weekly timeframe, but with weakening momentum, the downside scenario is becoming more likely. Traders should brace for heightened volatility as BTC navigates support levels, with $91,000-$94,000 emerging as the zones to watch. If Bitcoin fails to hold, the next stop could be $79,000, putting bulls under pressure.
Related: Bitcoin’s Growth: Outperforming All Major Assets Since 2011
FTX Repayments: A Potential Catalyst for Market Volatility
Starting today, February 18, 2025, FTX is set to redistribute $16 billion to its creditors, beginning with those owed $50,000 or less. This influx of capital into the market could introduce additional volatility.
If a part of these repayments is paid out in crypto and creditors choose to liquidate their holdings, it could exert downward pressure on asset prices, including Bitcoin. Conversely, if lenders opt to hold or reinvest their funds into the crypto ecosystem, it might improve market stability and potentially offset some downward tendencies.
