Bitcoin prices have recently tested the $88,000 mark twice, experiencing rejections at this level each time.

The cryptocurrency was around $87,000 at the time of this report and has begun to recover from a drop below $82,000 observed last week, as the prospects of a Federal Reserve rate cut gain traction. Analysts generally believe that the market is not in a bear phase yet, anticipating that a liquidity boost might drive prices higher.

Loss of Bull Market Support

Analyst Daan Crypto Trades remarked on Sunday, “It is clear by now that Bitcoin has fully lost its Bull Market Support Band.” He noted that the recent declines have created a considerable gap of around $20,000 to regain this support level.

Nevertheless, he believes that Bitcoin will eventually return to this crucial zone, stating, “Weekly market structure technically still intact as long as the April lows are defended.”

Bitcoin had a drop to $75,000 in April, but the recent sell-off has been notably sharper and deeper.

“It is clear by now that Bitcoin has fully lost its Bull Market Support Band.”
— Daan Crypto Trades

Analyst Rekt Capital analyzed the weekly candle, predicting that if Bitcoin closes above $86,000, it could see a rise back to $93,000 due to minimal support or resistance in that area. The weekly candle ended at $86,820, as per TradingView.

Cautious Perspective

However, crypto commentator Colin Talks Crypto expressed caution, stating,

“I wouldn’t flip macro bullish, as in new ATHs, too quickly. Relief rally, yes. A bounce was inevitable after being so oversold.”

He emphasized the need to reclaim key levels well above the current prices to realistically consider new all-time highs, asserting, “There’s no reason to believe this isn’t just an expected, large relief rally.”

As of now, Bitcoin is trading close to $87,000 after a recovery this past weekend.