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Bitcoin price recently attempted to regain the $96,400 level as support after breaking above $96,400 bearish trend line. A crypto analyst has underlined why this level of support is crucial Bitcoin’s next price rallyas this could set the stage for a possible retest above the $100,000 All-Time High (ATH).
Bitcoin price retests $96,400 to trigger a surge to $100,000
Prominent crypto analyst Rekt Capital went to X (formerly Twitter) on December 4. inform are over 518,000 followers on current Bitcoin price action and future direction. The analyst suggested that if Bitcoin were to successfully test the $96,440 support level, it could do so cause a price increase up to $100,068.
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Rekt Capital shared a price chart and revealed that Bitcoin has been continuously retesting its range of lower highs and seeing it as a main support level. In its Bitcoin price chart, ‘Lower Highs’ means that each successive high is lower than the previous point. This development is usually observed during a downward trend. However, with Bitcoin now seeing these lower highs as support, this signals a potential shift in the market, suggesting prices could stabilize after decreasing.
Rekt Capital also highlighted that Bitcoin is producing longer downsides, indicating that its price has fallen significantly over time buyers intervened. The analyst highlighted that Bitcoin is currently grabbing liquidity at lower prices without breaking below the main supporting trendline.
A liquidity grab occurs when unexpectedly large amounts of orders are activated at key price levels. In the case of Bitcoin, “liquidity grabbing” refers to the market dropping into levels where purchase orders are clusteredallowing big players to make trades.
Rekt Capital has revealed that as long as this trend continues, Bitcoin will eventually rise again to regain the $96,440 level. Restoring this crucial support will allow Bitcoin to reach and even surpass this level the $100,000 milestone.
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Bitcoin’s bear case scenario
Looking at the price chart presented by Rekt Capital, several support levels are highlighted, indicating price levels that Bitcoin could fall to if it fails to reclaim the $96,440 mark. While current Bitcoin price action indicating that it could potentially reach $100,000, the analyst has suggested that if the pioneer cryptocurrency fails to hold the support at $96,440, it could retest a lower support level around $91,070.
As indicated by the red line on the price chart, $91,070 is a crucial price level for Bitcoin. If the cryptocurrency also falls below this level, it could crashing to new lows approximately $87,325. At the time of writing, Bitcoin’s price is trading at $96,737, marking an increase of 3.24% in the past week. A drop below the $87,300 level would mean a crash of over 10% from Bitcoin’s current value.
Featured image created with Dall.E, chart from Tradingview.com