"If it breaks here, it's over"...Bitcoin, on the brink of collapse vs. straight to $80,000 crossroads

▲ Bitcoin (BTC)/AI generated image

Bitcoin (BTC) has recently shown a possibility of a downward reversal due to incomplete sections left on the chart during its recent sharp rise. However, an analysis suggests that if major resistance lines are broken, a strong upward rally towards breaking $80,000 could follow.

According to the cryptocurrency specialized media Bitcoinist on April 24 (local time), Bitcoin recently broke through $79,380, showing a steep upward trend, but during this process, a price imbalance zone was formed. This zone is interpreted as an area where a future pullback is likely to occur.

Market analyst Minga diagnosed that a head and shoulders pattern is in progress on the 4-hour chart. This is considered a typical bearish reversal signal, and Bitcoin is currently in the stage of forming its right shoulder.

The key variable is the resistance zone located between $76,800 and $77,400. If the upward trend is blocked in this zone, a large volume of selling is likely to pour out, causing the upward trend to break. In particular, if the neckline in the mid-$73,000s and the upward trend line collapse, downward pressure could rapidly expand. Currently, Bitcoin is fiercely contending over its direction around $77,640.

In case of a decline, $76,053 is identified as the first line of defense. If this zone is breached, a short-term sharp decline to around $70,450 is expected. This is interpreted as a movement to fill the price gap left during the upward process. On the other hand, if this support line is maintained, the bearish scenario loses strength.

The bullish scenario is also valid. If Bitcoin settles above $78,332, additional upward momentum will be secured, and the upper zone of $79,000 is presented as the next target. In particular, if it breaks through $79,388, the market trend is likely to shift into a sharp surge phase exceeding $80,000.

The current market is at a critical juncture where technical flaws and strong buying pressure collide, determining its direction. The key zone that will determine whether it's a short-term correction followed by a re-rise or a bearish reversal is the defense of $76,800.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*