Bitcoin weekly charts begin to show warning signs that can have serious consequences. Bollinger bands in particular show that prices can fall below $100,000. It was a line that was the main level of support for the entire crypto market, both technically and psychologically.
The setup is clear over a weekly time frame. Bitcoin rejected an upper band that was close to $124,000 and is now back in the centre at around $107,000. BTC has hit the top of this channel several times in the past, each falling after a short rise.
If the midband is not retained, the bottom edge of the structure will work for nearly $88,000. This means a 6-digit price range loss.
The patterns are important because they are consistent. Earlier this year, immersion in the lower band marked the start of strong rebounds, but rejections in March and July showed extended drawdowns.
This latest move is very similar to the previous reversal, so even if optimistic after the $124,000 peak, the market appears to be in the corrective phase again.
What’s next for Bitcoin?
The outside world makes the situation more vulnerable. Using Bitcoin is more likely to result in a deeper retreat if the buyer can’t hold the $100,000 level due to a combination of technical rejection and macro uncertainty.
For now, a $100,000 line is being used as a split point. Closed below this week, the Bollinger Band signal will be seen and pay attention to the next big thing $88,000 per BTC.
