Can Bitcoin Overcome $86K Resistance or Face Further Decline?

• Weekly price gaps in Bitcoin signal high volatility, making short-term predictions difficult for traders.
• The $86K level is key for Bitcoin; failure to break it could lead to further declines or a double bottom.
• Frequent gaps indicate Bitcoin’s market is far from stabilizing, leaving traders uncertain about future trends.

Bitcoin (BTC) is characterized by high volatility, and large price gaps emerge on a weekly basis. Daan Crypto Trades pointed out that these are attributed to the volatility of the existing market. This persistent volatility is making it challenging for the traders to predict BTC in the short run as it has become even more unpredictable.

Key Bitcoin Price Levels

This price level appears to be a critical level at around $86K, and there is now a gap created around it. This level has been closely monitored by the traders in a bid to determine whether it will act as a resistance or a support level to the general trending. 

Moreover, there is an unclosed gap still near the $77,000 that opened during previous price fluctuations. This gap is still missing, and a number of market players expect its activation in the near future. These gaps’ frequent formation suggest that this is a market that is not very close to settling down any time soon. The bigger the gap, the greater the chance of price correction or trend reversal, but choosing the direction of BTC is still a problem.

Michael van de Poppe stated that currently Bitcoin is bearish and has not made higher highs after testing the important resistance points. This makes it quite evident that the price of BTC can keep on declining in the future if it fails in breaking through certain thresholds. Van de Poppe said that he believes that the $86K level is crucial for BTC. Continuing the downward trend could be likely if it cannot go lower than this price.

Double-Bottom Scenario Possible

According to the analyst, Bitcoin needs to break at least $86,000 for the cryptocurrency to continue its uptrend. He has not entirely ruled out the possibility of a double-bottom formation and new lows for BTC. Such a move would probably make the market even more unstable and initiate liquidations to eliminate marginal contracts. At the time of writing, BTC is trading at $81,872 after shedding 3.9% within the last 24 hours.

Source: TradingView

Based on these important levels, traders keep an eye on Bitcoin movements. Its presence in these gaps could change the Bitcoin price movements as the market remains unpredictable. However, given the erratic price volatility of Bitcoin, the next few weeks are going to be decisive as to whether the cryptocurrency will be able to start rising again, or if a new round of declines is to be expected.