Bitcoin is currently valued at $95,700, reflecting a minor decrease over the previous 24 hours. Over the past week, it has faced a nearly 10% drop in value.

The cryptocurrency was unable to surpass a notable resistance point, a situation viewed by some traders as a critical moment. Recent trends have provoked worries regarding the short-term outlook of the market.

Rejection at Key Resistance Level

Bitcoin was recently stymied by a long-established trendline that has halted upward movements previously. This line has led to a significant 26% decrease from recent highs. Analyst Rekt Capital observed that this resistance level could be seen as either the ultimate local peak or the apex of the bull market. The refusal to breach this threshold indicates that the trendline remains a formidable obstacle to upward progress, despite previous signs of fatigue in that resistance.

“What initially seemed like a weakening resistance has actually strengthened in rejection power,” added Rekt Capital.

The inability to breach this resistance has created conditions susceptible to further downturn.

Source: Rekt Capital/X

Threat to the 50-Week EMA

The critical 50-week Exponential Moving Average is under observation. Bitcoin is currently trading below this line, and a weekly closing beneath it could indicate a trend breakdown. Rekt Capital stated, “There’s a high probability the Weekly Candle Closes below the 50-week EMA,” which might invite additional selling pressure in the upcoming weeks.

A close below this EMA would signify a weakening bullish support, prompting traders to consider lower support levels. The next few weekly closes will essential in determining the market’s position.

Exchange Inflows Signal Caution

There has been a notable shift in investor activity recently. As previously reported, over $1 billion in Bitcoin has been transferred to exchanges within three days, typically indicating that traders are ready to sell. Despite favorable news regarding US-China trade negotiations, the price has continued to decline.

Some analysts assert that the recent drop was anticipated, while others caution that the market has yet to settle at a bottom. A figure of $74,000 has been projected as a possible target if current support fails to hold.

Uncertain Trends Ahead

Market trader Daan Crypto Trades noted that Bitcoin has largely hovered around its CME close price, which is standard for weekends. “Large movements during weekends have been rare in the past few months,” he commented. As of now, there hasn’t been convincing buying activity to elevate prices.

Market analyst Michaël van de Poppe mentioned that a sweep of the lows might preset an opportunity for a reversal.

“If that happens, then there’s trillions and trillions of short liquidity ready to be taken out,” he remarked.

He added that maintaining a position above $94,000 could lead to a retake of $100,000.

The upcoming week is likely to see more volatility. Bitcoin must sustain its current support and attract buyers to prevent a deeper decline.