After a short-lived recovery, Bitcoin (BTC) is attempting to bounce from a crucial level to reclaim the $110,000 support. However, some analysts suggest that a retest of the $90,000 level could be the next stop for the cryptocurrency.<\/p>\n
Bitcoin lost the $110,000 support for the first time in nearly two months, dipping below the lower boundary of its local range, between $108,700-$119,500. The flagship crypto hit an eight-week low of $107,900 on Friday afternoon, raising concerns for its short-term rally among investors.<\/p>\n
Crypto analyst Ali Martinez suggested<\/a> that the market is starting to show signs of fatigue, with Bitcoin Dominance displaying cracks after carrying \u201cthe bulk of the bull market momentum.\u201d<\/p>\n To the analyst, BTC\u2019s current price action signals a macro trend shift, mirroring the 2021 price action and the conditions that preceded the 2021 cycle peak. At the time, the cryptocurrency hit a peak<\/a> of $60,000 in April, retraced, rallied to $70,000, and set a strong bearish divergence against the Relative Strength Index (RSI) before the bear market began.<\/p>\n This time, Bitcoin is showing the same setup that foreshadowed the end of the last cycle, with price making higher highs while the RSI makes lower lows, Martinez explained.<\/p>\n Among other technical signals, the analyst highlighted<\/a> that the MACD indicator had turned bearish this week. He detailed that this bearish crossover aligns with the price drop and reinforces the downside risks.<\/p>\n Meanwhile, he added that the recent death cross in the Bitcoin MVRV Momentum indicator \u201csignals a macro momentum reversal from positive to negative. This is a historically reliable warning sign of cyclical tops.\u201d<\/p>\n The analyst affirmed that the on-chain evidence suggests Bitcoin\u2019s top may be in, at least temporarily, with bias shifting bearish and a risk of retesting lower support levels.<\/p>\n Martinez also noted that the $108,700 support<\/a> is crucial for BTC\u2019s short-term performance, as a weekly close below this area would confirm a deeper trend shift, which occurred in 2021.<\/p>\n After peaking in late 2021, the flagship crypto lost its local range above the $58,000 mark, which led to a retest of the macro range\u2019s mid-zone and an eventual drop below the macro range\u2019s lows in the coming months.<\/p>\n If BTC loses its immediate technical floor, the price could retest the $104,500 and $97,000 support levels, risking a drop to the mid-zone of the macro range, around the $94,000 area.<\/p>\nWill BTC Mirror Its 2021 Drop?<\/h2>\n