As Bitcoin (BTC) attempts to hold $80,000 as support, some market analysts have warned about a crucial resistance area that could make or break the flagship crypto’s bullish rally.
Bitcoin Bull Rally Meets Key ResistanceHe explained that BTC has been attempting to clear the 200-day Simple Moving Average (SMA), near $82,500, for three consecutive days. A breakout above this level could trigger a rally toward the $94,000 area, Martinez affirmed, while a rejection could send the price to retest the 50-day SMA around $75,000.
Over the past month, Bitcoin miners have been steadily taking profits, offloading over 3,400 BTC they’ve held since the $72,000 range to cover operational costs or lock in gains at the recent highs. “This added supply could strengthen the overhead resistance,” he affirmed.
Meanwhile, retail and futures traders are “aggressively increasing their risk appetite,” with the Estimated Leverage Ratio currently at a yearly peak, indicating an overextended market reliant on borrowed funds.
BTC Poised For Another Correction?Historically, when Bitcoin breaks down from its macro triangle, the price retests its 50-month EMA as support and briefly bounces before dropping toward its bear market bottom.
As Bitcoin retests this area as support once again and faces strong resistance around the macro triangle base, the analyst asserted that this rebound may be weaker, adding that history suggests the 50-month EMA support will likely be lost and turned into resistance.
“That’s pretty compelling evidence to support the weaker rally thesis as well, because if we do reject from the confluent region of resistance, which is the macro downtrend and the macro triangle base, then indeed this rally (…) will be a lot lesser than the magnitude of that rally that we saw in 2024,” he concluded.
