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Bitcoin tests a critical low after a failed January surge
In late January, Bitcoin came under notable pressure as sellers maintained control of the market. After an unsuccessful attempt to reach the recent peak of $97,900, the price moved sharply lower.
Bitcoin’s behavior continues to reflect a bearish market structure. The flagship crypto asset remains below its 20-, 50-, 100-, and 200-day moving averages. As a result, every recovery attempt is quickly capped by selling pressure.
The market rejected multiple bounce attempts below the 0.382 Fibonacci retracement level. This failure highlighted the presence of strong excess supply in the upper part of the $89,000 range. In addition, volatility increased during the downward move, pointing to distribution rather than steady accumulation.
In the short term, support will play a key role. The $87,400–$87,600 zone is currently attracting buyers. A brief reaction was observed there, although optimism remains limited. However, analysts note that a breakdown below this range could lead to a drop toward $86,000 or even $84,400.
On the other hand, resistance remains multi-layered and strong. The first barrier lies in the $88,300–$89,200 range. This area overlaps with prior consolidation and short-term moving averages. Moreover, during previous rebounds, sellers defended the 0.5–0.618 Fibonacci range around the $91,000 level. This region continues to attract sellers. For a more meaningful structural shift, the price would need to rise above $92,800. Without such a move, bearish control is likely to persist.
See also: "Zcash Forms a Giant Bullish Pennant. A 90% Rally Is Possible"
