Accumulation in Bitcoin Price: Rise or Fall?

The price of Bitcoin (BTC) is going through an important period this week, maintaining an accumulation process between the strong support of 85,000 dollars and the resistance of 88,500 dollars. Investors are observing that significant price movements could occur if this narrow band breaks upwards or downwards.

When looking at the daily chart, Bitcoin price has received a serious reaction from the 85,000 dollar level in recent days, testing this level multiple times. However, the price has neither managed to break below the 85,000 dollar support nor exceeded the 88,500 dollar resistance to initiate a new upward movement. Therefore, the price has continued to remain between these two critical levels throughout the week.

Another notable point in the daily chart is that if the 85,000 dollar support is lost, the risk of a pullback to the 80,600 dollar level first, and then to the lower level of 78,250 dollars increases. If the reaction from this point remains weak, there is also the possibility that Bitcoin could decline to the liquidity area of 74,400–70,600 dollars, which previously initiated the all-time high (ATH) of 125,000 dollars.

On the other hand, if the 88,500 dollar resistance is overcome, it is anticipated that the daily basis could bring the 93,500 dollar annual opening price back into consideration, followed by the 99,500 dollar band. In the 4-hour chart, however, the situation appears to be somewhat more complex. Although the price continues to receive a reaction from the 85,000 dollar region throughout the week, if this level is broken downwards, 82,200 dollars emerges as the first strong demand area.

On the upside, if the 88,500 dollar resistance is exceeded, 90,300 dollars, the weekly opening price, becomes a critical threshold. According to analyses, a sustained price above 90,300 dollars could create a positive scenario in the short term. However, if this level is surpassed with a temporary breakthrough and then falls back below, particularly if the 85,000 dollar level is lost, the risk of testing the 82,200 dollar level increases.

Finally, last week, ahead of the Bank of Japan's (BOJ) interest rate hike to 0.75%, the market was dominated by expectations of a "new low" in Bitcoin. However, following the interest rate hike, global risk appetite has recovered, and Bitcoin has tested above 87,000 dollars without making a new low. While a broad segment of the market still anticipates a new low, maintaining the 85,000 dollar support is, according to analysts, strengthening the likelihood of an upward breakout.