This week, Bitcoin faces another test: can the cryptocurrency hold the key support level at $90,000? Experts predict that the upcoming weeks will reveal whether the positive momentum will continue.
The Significance of Bitcoin's Support Level
Market expert Benjamin Cowen highlighted the importance of Bitcoin maintaining the $90,000 support level. Historically, support at this level has led to rapid correction and growth of the cryptocurrency, as seen in January 2023.
Risks of Falling Below $90,000
If the $90,000 mark turns into resistance, Bitcoin may face a downtrend and consolidation phase, as experienced in August 2023. Falling below this level will be a key indicator for forecasting future price movements.
Impact of Economic Factors and Regulatory Changes
Bitcoin is trading at $99,496, benefiting from favorable Consumer Price Index reports and positive investor sentiment towards altcoins due to potential regulatory shifts under the new SEC administration. However, Cowen cautioned that a decline below $90,000 could lead to further consolidation and threaten the current gains of the cryptocurrency.
The upcoming weeks will significantly impact Bitcoin's market. A sustained support level could signal growth, while a breach may lead to consolidation. These developments will allow market participants to make more informed decisions amidst increased volatility.
