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U.Today - A recent drop has brought Bitcoin closer to crucial support levels, indicating that it is beginning to show signs of weakness. The $90,000 threshold is becoming a crucial one that might dictate the market’s next significant movement. The potential outcomes of Bitcoin revisiting this lower boundary, or worse, breaking below it are currently being questioned by analysts. The way the market is set up, it looks like Bitcoin is having trouble keeping up.
The price has failed to establish a distinct higher high after reaching a local high of about $109,000, indicating possible downside risks. The possibility of additional selling pressure would increase if Bitcoin fell to $90,000, which would place it at the bottom of its current range. The situation appears to be even more worrisome for altcoins. Already a lot of tokens have dropped 80% from their peak values.
The market as a whole may experience a massive sell-off if Bitcoin drops back to $90,000, which would result in even larger losses for riskier assets. The analyst stated quite simply: "I don’t even want to raise the question of what would happen if Bitcoin broke down. What would happen to tokens that are already down 80% if it dropped back to the bottom of the range at 90,000?"
There are still a number of support levels such as $99,000 and $92,000 that could halt the decline of Bitcoin. A breakdown below $90,000, however, might trigger a panic-driven capitulation event if the selling pressure persists. As of right now, Bitcoin is still in a vulnerable position. Bulls must intervene quickly to avoid one of the biggest market corrections in the recent time. The outcome of the upcoming trading sessions will be crucial in determining whether Bitcoin holds or declines further.