Recent price fluctuations of Bitcoin attract analysts' attention, indicating a potential significant decline. Analyst Bennett shares insights on key support levels.
Prospects of Falling Below $106,000
Bennett noted that the current market structure of Bitcoin suggests a potential bearish reversal. If Bitcoin loses support at the $106,000 level, it increases the likelihood of moving down to several target values. According to him, "If we get a confirmed breakdown, the first target sits near $101,000." "If that fails, the market could move down to $100,000, and possibly to $97,000 or even $92,000 in the worst-case scenario."
Conditions for a Bullish Reversal
Despite the looming downside risk, Bennett also outlined a bullish invalidation scenario. If Bitcoin can reclaim $109,000 and close above $110,000 on the daily chart, he believes the breakdown thesis would be invalidated. "A close above $110K flips the outlook. It shifts momentum back to the bulls," Bennett stated.
Current Market Position
Currently, Bitcoin remains in a tight range between $106,000 and $112,000, with traders awaiting confirmation of direction. All eyes are on the $106,000 zone — a break below this level could unravel short-term bullish hopes and expose the market to a steep correction.
The current price fluctuations of Bitcoin create uncertainty in the market. Traders' attention is focused on the $106,000 level, from which the further price dynamics depend.
