Bitcoin’s Week-Long Dip: Will a Weekend Rally Push BTC to $93,000?

Bitcoin (BTC) has experienced a significant correction this week, retracing from its recent highs and testing key support levels. After a sharp drop below $80,000 – its lowest point since November – many are wondering if a weekend rebound is on the horizon. The cryptocurrency market has shown notable volatility, leaving investors questioning the next move.

A Week of Volatility: The past seven days have seen Bitcoin plummet approximately 21% from its peak of $99,000. This decline pushed BTC below its post-US election price range and nearly 30% below its all-time high in January. The swift drop briefly filled the November 2024 CME Gap between $78,000 and $80,700, raising concerns about further losses.

Signs of Recovery? While the market correction was substantial, there are indicators suggesting a potential shift. Analysts have noted that the selling pressure, while significant, may be waning. The recent surge of approximately 7% from the day’s lows, stabilizing around the $83,000 to $84,000 support zone, is a sign of potential buyer intervention. Key market watchers are closely monitoring the CME Gap support and sell-side volume, as persistent selling pressure is generally unsustainable.

Weekend Relief on the Cards? Crypto analyst Jelle points to three significant drops into oversold territory this week, followed by retesting of lows before today’s bounce. This pattern, combined with the recent price action, suggests a possible weekend rally. Reclaiming the $84,500 support is crucial for this recovery, as previous retests ended in further declines. However, the recent break above the 200-EMA cluster offers a more optimistic outlook for the weekend.

The $93,000 CME Gap: Analyst Rekt Capital highlights that Bitcoin has consistently filled previous CME Gaps since mid-March 2024. Currently, only the gap between $92,800 and $94,000 remains unfilled. If Bitcoin follows this trend, a rally towards this range is a distinct possibility.

Potential Scenarios: Two key scenarios are emerging. A short-term recovery could push Bitcoin back to $93,500 by the end of the week if the recent dip proves to be a short-term correction. Alternatively, a more extended rally towards $93,500 within two to three weeks could occur as part of a larger post-breakdown recovery.

Conclusion: While uncertainty remains, the market is showing signs of a potential turnaround. The upcoming weekend could be pivotal, determining whether Bitcoin’s recent dip was a temporary correction or the start of a more significant downturn. Continuous monitoring of key support levels and trading volume will be vital in determining the next market movement.