Has the Rise of Bitcoin Ended? BTC Will Drop to $94,000 If This Level Is Not Maintained

Bitcoin has lost the support level of 110,000 dollars for the first time in nearly two months, falling below the lower boundary of the local range, which is between 108,700 and 119,500 dollars. This leading cryptocurrency hit an eight-week low of 107,900 dollars on Friday afternoon, raising concerns about its short term momentum among investors. Cryptocurrency analyst Ali Martinez believes that the market is beginning to show signs of fatigue, as Bitcoin Dominance shows cracks after "dominating much of the bullish market momentum." According to the analyst, the current price movement of BTC signals a macro trend change, reflecting the price movements of 2021 and the conditions before reaching the peak of the 2021 cycle. At that time, this cryptocurrency peaked at 60,000 dollars in April, then retreated, rose to 70,000 dollars, and created a strong bearish divergence against the Relative Strength Index (RSI) before the bear market began.

This time, Bitcoin is showing the same setup signaling the end of the previous cycle, with the price reaching higher levels while the RSI reaches lower levels, Martinez explained. Among other technical signals, the analyst emphasized that the MACD indicator has turned to a bearish trend this week. He elaborated that this bearish crossover aligns with the downtrend and reinforces the downside risk. Meanwhile, he added that the recent death cross signal in Bitcoin's MVRV momentum indicator "signals a reversal of macro momentum from positive to negative. This is a historically reliable warning sign of cycle peaks." Analysts assert that on-chain evidence suggests Bitcoin may have peaked, at least temporarily, with a trend shifting towards a fall and the risk of testing lower support levels. Will BTC reflect the fall of 2021? Martinez also noted that the support level of $108,700 is very important for the short term performance of BTC, as a weekly close below this area would confirm a deeper trend change, which occurred in 2021. After reaching its peak at the end of 2021, this leading cryptocurrency lost the local range above $58,000, leading to a retest of the mid-range of the macro range and ultimately falling below the lows of the macro range in the following months. If BTC loses the technical threshold immediately, the price may retest the support levels of $104,500 and $97,000, with the risk of falling to the mid-range of the macro range, around the $94,000 area. Altcoin Sherpa has evaluated the performance of this cryptocurrency and stated that Bitcoin will have strong support in the range of 103,000 to 108,000 dollars, as the 200-day exponential moving average (EMA) is at 104,000 dollars. However, analyst Ted Pillows believes that the level of $124,000 seems to be a local peak. He explains that, historically, the bottom of Bitcoin occurs after testing the weekly EMA 60 line, which is currently around the support area of $92,000 and there is a CME gap. Ted concluded: "In this scenario, Bitcoin will start to reverse after 3-4 weeks and reach a new ATH in November/December."