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Bitcoin Retests Four-Month Downtrend Line Amid Market Volatility
Bitcoin has spent the past week trading within a range of $74,000 to $84,000, following heightened volatility triggered by recent tariff war developments. After reaching a weekly high of $84,720, the leading cryptocurrency dropped to a five-month low of $74,773, driven by a market correction.
This downward move posed a risk of a further 13.7% decline toward the $69,000 support level, with Bitcoin needing to close above $78,500 on the daily chart to spark a short-term recovery. However, BTC rebounded by 13.5% from Monday's low, making another push to reclaim the $84,000 resistance.
Despite the rally, Bitcoin’s momentum slowed by Thursday, retracing nearly 5% to the $79,000 level. Analyst Alex Clay noted that while the recent surge was positive, Bitcoin still needed to reclaim the $80,000 mark and break through the prevailing four-month descending resistance for a shift in short-term market structure.
Clay pointed out that BTC’s 7% jump over the past 24 hours invalidated his bearish scenario as key support held. Yet, a confirmed breakout above the $84,000 level remains essential for bullish continuation.
Is Bitcoin Poised for More Volatility?
Analyst Rekt Capital observed that Bitcoin successfully retested the $78,500 support level but faced rejection at the four-month downtrend resistance. As a result, BTC’s price is now consolidating between these two key levels — a setup that typically precedes heightened volatility.
On the flip side, Martinez also noted Bitcoin’s strength on Friday, breaking through the $82,360 resistance and briefly reaching a daily high of $84,220 before settling at $83,500. He stated that a sustained breakout above this range could pave the way for a rally toward $91,500.
At the time of writing, Bitcoin is trading at $83,640 — reflecting a 1% dip over the past week.
