Bitcoin (BTC) may experience a decline if it cannot maintain its position above the critical support level of $90,000, according to crypto analyst Cheds.
In a recent strategy session on YouTube, he pointed out that Bitcoin is trading sideways, with resistance at $107,000 and a clearly defined support level at $90,000. However, he cautioned that if BTC falls below this critical threshold, it could lead to a swift sell-off.
Cheds emphasized the importance of maintaining $90,000, as past price movements and multiple interactions reinforce its role as a critical support level. He cautioned that breaking below this point would deal a “severe momentum blow” to Bitcoin’s uptrend.
“If Bitcoin loses $90,000, I don’t think $78,000 will hold,”
he stated.
“We’re likely heading to $74,000, maybe even $72,000. There won’t be any meaningful support at $85,000 or $78,000.”
Despite these concerns, Bitcoin remains relatively stable. At the time of writing, BTC is trading at $97,749.26, reflecting a slight increase on the day.
Meanwhile, analysts at Matrixport suggest a strategic approach to the market, noting that Bitcoin offers substantial buying opportunities when its Relative Strength Index (RSI) drops to 40%. However, with the RSI currently at 48%, they advise waiting for a more favourable entry point. Recent market movements further underscore Bitcoin’s volatility. On February 4, BTC rebounded after fears surrounding Donald Trump’s proposed tariff hikes initially triggered a sharp decline. The crash on February 3 resulted in record liquidations, surpassing those seen during the Terra and FTX collapses.
Additionally, Matrixport believes that Bitcoin’s market cycle may shift, with steep corrections possibly ending. They believe Wall Street’s increasing involvement and greater regulatory clarity could extend the bull market beyond 2025. Favourable macroeconomic conditions are also expected to sustain capital inflows into Bitcoin, supporting long-term growth, as outlined in their January 31 post.
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