Bitcoin Breaks Critical Support, Faces Deeper Sell-Off Risk

Bitcoin has once again fallen below a critical support zone, raising significant questions about the market’s readiness for a deeper sell-off. According to analysis from MakroVision Research, the cryptocurrency has faced strong rejection, resulting in a decisive break below several key support levels. The price has now slipped back into the range of its previous low and continues to trade beneath the critical green resistance zone between $85,200 and $86,200. This price action highlights that bearish pressure remains firmly in control for the time being.

On very short-term timeframes, there are early signs of an attempted rebound. However, analysts caution that without a timely and sustainable reclaim of the $85,200–$86,200 zone, this move is best viewed as a technical counter-bounce rather than the start of a meaningful trend reversal. As long as the price remains capped below this area, the broader short-term downtrend is considered intact. From a tactical perspective, this $85,200–$86,200 region has become the key battlefield. A clean reclaim and hold above this zone would be the first clear indication that selling pressure is beginning to fade, potentially allowing for price stabilization and a relief rally.

Should this reclaim attempt fail, the risk of continued downside acceleration increases significantly. In that scenario, market focus would turn to the $72,300–$75,300 range, a technically prominent support zone with historical significance. This zone may ultimately serve as a potential support and reversal region should the market experience another phase of capitulation, marking a much deeper correction from current levels.

Adding a layer of complexity to the near-term outlook is the opening of a CME gap. Crypto analyst MartyParty, in a recent Bitcoin Wyckoff Accumulation update, highlighted that this gap is expected to be filled by Sunday evening. This phenomenon sets the stage for potential short-term volatility, with traders closely watching key technical levels and liquidation activity over the weekend.

Several scenarios are possible over the coming days, as outlined by market observers. One possibility is the continued liquidation of remaining leveraged longs. The lowest 25x Binance liquidation is currently noted around $79,350, and this process could potentially complete what is known as a classic Wyckoff Spring pattern—a technical setup often preceding a reversal from a downtrend. Another scenario involves a retest of secondary support at $81,800, which could act as a temporary floor for Bitcoin’s price action, providing a brief respite from selling pressure.

If support at $81,800 holds, Bitcoin may trade sideways or attempt to push toward the primary support level, which has now turned into resistance at $84,800. However, the most probable near-term scenario, according to the analysis, suggests a move up through $84,500 toward $86,463, followed by a retest of $84,500 on Sunday night as the CME gap is filled. This sequence would complete the near-term Wyckoff accumulation setup, potentially setting the stage for a more defined directional move in the week ahead.

The current market structure presents a clear hierarchy of critical levels for traders to monitor. The immediate hurdle remains the $85,200–$86,200 resistance zone. Its role has transformed from support to a formidable barrier, and its reclamation is the minimum requirement for altering the immediate bearish bias. Until that occurs, the path of least resistance remains to the downside, with any rallies viewed with skepticism.

The interplay between technical price levels and market microstructure events, like the impending CME gap fill and potential liquidations on exchanges such as Binance, creates a volatile cocktail. Analysts from MakroVision Research and MartyParty both underscore that the market is at an inflection point. The failure to stabilize above key resistance opens the door to a test of much lower supports, while a successful gap-fill maneuver could provide the catalyst for a short-term stabilization attempt. For now, the sentiment remains negative, with the market awaiting a clear signal—either a forceful reclaim of lost ground or a decisive break toward the next historical support zone—to determine the next significant leg for Bitcoin.