Bitcoin breaks lower and below a floor area between $90,742 to $92,092

The price of Bitcoin has broken lower, falling below a key floor in the $90,742–$92,092 swing area, a level dating back to November. A previous dip below this zone on January 13 was short-lived, with a low at $89,164 before a sharp rebound that led to the all-time high of $109,356 on January 20.

Since that high, Bitcoin has revisited the floor, bounced, and consolidated before yesterday’s breakdown, which accelerated today with increased downside momentum. With the floor now acting as resistance, buyers must reclaim this level to regain control. Failing that, sellers remain in charge.

On the downside, today’s low found support at the 38.2% retracement of the August 2024 rally at $86,520. Holding this level keeps buyers in the game, suggesting a potential retracement-driven correction rather than a full reversal. However, to shift the bias back upward, the price must reclaim the former floor—now a ceiling.

For now, sellers have the technical edge. Can they maintain the momentum? What we do know is the technical roadmap is known.

This article was written by Greg Michalowski at www.forexlive.com.