As the market erases its 2026 gains, Bitcoin (BTC) has fallen to its lowest level in weeks and is attempting to reclaim a crucial level. Some market observers have warned that a retest of the November lows is likely if volatility continues.
Bitcoin Breaks Down From Key SupportOn Wednesday, Bitcoin continued to pullback and hit a three-week low of $87,263. The cryptocurrency had been trading between the $90,000-$96,000 range since its start-of-the-year breakout, reaching a two-month high of $97,924 a week ago.
Similarly, Market observer Lyvo Crypto pointed out the same formation, detailing that Bitcoin broke down from the pattern’s ascending support after the recent price action and lost its two-month uptrend.
To the trader, this signals that “momentum is fully in the bears’ control” and “if it [bearish momentum] sustains, we could see a free fall” that could likely result in a retest of the $78,000 area.
In the case of a breakdown to the November lows, he advised that “from there, we’ll wait for confirmation of a double bottom and look for a relief rally.”
BTC To Repeat Its 2020 Price Action?At the time, Bitcoin retraced over 40% from its late 2021 cycle top, followed by a “dead cat bounce” at the start of 2022 and a second major correction toward new lows.
“If we match the 2022 fractal’s top and the October 2025 top, we’ll see there’s still about 1 month of PA to make that final leg up and test the 50-Week MA or the 200-Day MA,” he explained.
He concluded that one more pump above the $100,000 is likely, but advised caution as the key supports are being tested.
As of this writing, Bitcoin is trading at $89,890, a 1.2% increase in the daily timeframe.
