Bitcoin is currently navigating near the $90,209 mark following a daily decline of approximately 2%. The cryptocurrency market remains within a broad trading range as market participants are closely monitoring significant support levels. Recent seven-day data indicates a gradual decline, placing the market in a cautious state.
The long-term price chart reveals a recurring Power-of-3 cycle, which encompasses three distinct phases: accumulation, manipulation, and expansion. Historical patterns show that each accumulation phase typically lasts around 105 days, while the manipulation phase extends for about 49 days before transitioning into a 98-day expansion period. Recent activity indicates the conclusion of another 49-day manipulation phase, suggesting the onset of a new expansion leg.
One market analyst emphasized, “A weekly close below $78,000 will warn of a long bear market.” This statement underscores the critical nature of the $78K support level, which serves as a pivotal threshold for maintaining Bitcoin”s bullish structure on the weekly timeframe.
Liquidity Zones and Resistance at $94K
Liquidity assessments indicate that the primary cluster resides between $97,000 and $98,000, a crucial area for traders anticipating the next significant market reaction. However, price movements have consistently faced rejection near the $94,000 level, with numerous attempts to surpass this zone failing over the past several weeks. Analysts have pointed out that a decisive breakout above $94,000 could pave the way for a rapid ascent towards the upper liquidity band.
One market observer noted, “Once the breakout above $94K holds, the next move will come quickly.” Until such a breakout occurs, the market is likely to remain confined within a tight range, subject to sharp reversals.
Triangle Formation and Moving Average Pressures
Short-term charts reveal that Bitcoin is positioned within an ascending triangle. This formation has emerged as higher lows have developed along an upward-sloping support line. The apex of this pattern is situated near the $94,000 mark, maintaining market compression. Each attempt to advance towards the 4-hour 200 moving average has been met with resistance, yet the setup remains stable as long as the rising support line is intact.
This condition keeps the triangle formation active, allowing for a potential breakout if selling pressure diminishes.
Key Support at $78,000 Remains Essential
Analysts continue to monitor the $78,000 level closely, as it represents the structural foundation of the Power-of-3 pattern. The overall outlook remains bullish as long as Bitcoin trades above this support level. A weekly close beneath $78,000 would disrupt this cycle and signal that the market may enter a prolonged bearish phase.
In conclusion, the next few trading sessions will be critical for Bitcoin as it tests the $94K resistance and the sustainability of its bullish trend hinges on maintaining support above $78K.
