Bitcoin Plunges Below $96K Support, Erasing 2025 Gains Amid Extreme Bearish Sentiment
Bitcoin investors have been hit hard this week as the price closed below the key $96,000 weekly support level, signaling more bearish price action to come. The hopes and dreams of the bulls have been dashed, with little chance of a meaningful rally in the near future.
Looking ahead, the next major support levels for Bitcoin are at the 0.382 Fibonacci Retracement from the 2022 bottom to the October 2025 high, as well as a high volume node around the $83,000 to $84,000 range. If these levels are broken, we could see the price drop to the highs of the 2024 consolidation zone between $69,000 and $72,000.
On the flip side, resistance levels above $94,000 are now thick, making it difficult for the price to bounce back significantly. The $98,000 level is expected to hold as resistance, with potential for a short squeeze pushing the price to $101,000. However, strong resistance lies in the $106,000 to $109,000 zone, with $114,000 and $116,000 acting as further barriers for the bulls.
This week’s outlook for Bitcoin remains extremely bearish, with little hope for a meaningful rally. The broadening wedge pattern has not definitively broken bearish yet, but the price is barely supported at current lows. Bulls may see a bounce to $106,000, but the price is likely to roll over to new lows from there.
In terms of the 4-year Bitcoin cycle theory, the high for this cycle has most likely already occurred. With resistance levels overhead and little strength in recent weeks, it is unlikely that Bitcoin will see new highs before the end of the year. A late cycle high in Q1 2026 is possible but improbable given the current market conditions.
In conclusion, Bitcoin investors are facing a challenging time as the price continues to drop. The support and resistance levels outlined above will be crucial in determining the future direction of the price. Bulls may still hold out hope for a miracle rally, but the odds are stacked against them in the current market environment.
