Bitcoin Must Break Through This Level to Avoid a $50,000 Comedown

Bitcoin (BTC) is approaching its “most critical” resistance hurdle of the bear market, new BTC price analysis says.

Key points:

Bitcoin has arguably its most important resistance battle at $84,000.A failure to reclaim a 200-day trend line opens up the road down to $50,000 lows, warns analysis.The bull market support band needs to hold in the event of a corrective phase.

Bitcoin faces battle to avoid “bear cycle continuation”

In an X post on Wednesday, crypto investment company TradingShot revealed the next key decision point for Bitcoin bulls.

BTC price action continues to test $82,000, according to data from TradingView, but it is the area around $84,000 that will be essential to reclaim as support next.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

“Bitcoin is about to test its 1D MA200, the most critical Bear Cycle Resistance but has also already entered the Pivot Zone formed from the previous Low,” TradingShot wrote.

An accompanying chart compares current price performance with the 2022 bear market, with the 200-day simple moving average (SMA) at the center.

At the time, BTC/USD retested the 200-day SMA from below after initially losing it, but the reclaim failed — and the result was a trip to new macro lows.

“This is a familiar pattern that $BTC forms during downtrends, it was also emphatically present during the 2022 Bear Cycle where those Pivot Zones got formed from a previous Low that was later tested as Resistance,” the analysis continues.

BTC/USD one-week chart. Source: TradingShot/X

Should history repeat, TradingShot is eyeing a dramatic correction, with a bottom target at $50,000.

“A rejection now on this ‘Stepping Stones’ pattern will confirm the Bear Cycle continuation for BTC to $50000, while a break-out will invalidate it,” it concludes.

As Cointelegraph reported, the $50,000 zone has long been a favorite among traders who see the bear market continuing.