As Bitcoin (BTC) breaks through key resistance levels, one analyst believes the cryptocurrency is setting up for a move higher and a retest of an important technical area in the coming weeks.
Bitcoin Nears a Crucial Test
On Tuesday, Bitcoin rose 2.5% to retest the $93,500 resistance level for the first time in a week. The cryptocurrency has been trading between $84,000 and $93,500 for three months, repeatedly failing to turn this level into support.
Analyst Rekt Capital recently noted that Bitcoin is approaching a “historic” test as it begins to form another decisive technical region just above current prices. The analyst explained that BTC is nearing its dynamic Bull Market Exponential Moving Average (EMA) cluster, where the 50-week and 21-week EMAs are converging.
This key cluster, currently between $96,000 and $97,500, has historically been tested before a “meaningful crossover,” with Bitcoin’s price typically stretching beyond it. However, this has usually been followed by a failure to confirm the area as support.
“When that happens, the crossover itself often follows the bearish price event, rather than causing it, with the EMA cluster flipping into resistance from the underside and leading to further downside,” the analyst detailed.
Past cycles show that the 50-week and 21-week EMAs can move very close together and even overlap for extended periods before a decisive crossover. Currently, Bitcoin has yet to retest and extend beyond these two EMAs, but its historical pattern suggests it likely will.
Furthermore, BTC’s price is “positioning itself in a way that could allow for a springboard higher, potentially enabling a test of this cluster in the weeks ahead. The key question is timing.”
BTC Breaks Key Resistance Levels
The analyst also discussed Bitcoin’s recent performance, which has shown a structural shift despite sideways price action. Last week, BTC closed above its multi-week downtrend, a major resistance point since late November.
This marks “a small but notable technical milestone,” as Bitcoin now holds above the November and December highs on the weekly chart, treating the former resistance as support. Additionally, the mid-zone of its local range, around $90,500, now aligns almost perfectly with the former downtrend, meaning that previous resistance is beginning to act as layered support.
Therefore, if Bitcoin continues to hold this mid-range area, it should be able to challenge higher levels and move toward $100,000.
Rekt Capital added that, unlike previous attempts, the most recent rejection from the crucial $93,500 resistance was much shallower and shorter, indicating weakening selling pressure.
Bitcoin has now successfully retested the downtrend breakout area as support and briefly reclaimed the $93,500 resistance, rising above $94,000 once again. Ultimately, BTC will need to hold this area and close the week above $93,500 to “kickstart a breakout from the Weekly Range,” the analyst concluded.
At the time of writing, BTC is trading at $94,334, up 2.6% over the past week.
Frequently Asked Questions
FAQs Bitcoin Approaching the 93500 Level
BeginnerLevel Questions
1 What does it mean that Bitcoin is approaching a key technical test
It means Bitcoins price is getting close to a historically important level that traders and analysts watch closely How the price reacts at this level can give strong clues about its next major moveeither breaking higher or reversing lower
2 Why is the 93500 price level so significant
This level is often a major previous high or a strong resistance point on price charts If Bitcoin can break and hold above it it suggests strong buying momentum and could open the path to new alltime highs If it fails it might indicate selling pressure is still dominant
3 Im new to crypto What is resistance in this context
Resistance is a price level where selling interest has historically been strong enough to prevent the price from rising further Think of it as a ceiling The 93500 level is seen as one of these ceilings that Bitcoin is trying to break through
4 What could happen if Bitcoin breaks above 93500
A strong and sustained break above this level could trigger a wave of new buying from traders and investors potentially pushing the price toward its previous alltime high and beyond It would be seen as a very bullish signal
5 What could happen if Bitcoin gets rejected at 93500
If the price reaches 93500 but then falls back down it suggests sellers are still in control at that level This could lead to a pullback or a period of consolidation at lower prices before another attempt
Advanced Practical Questions
6 What are traders looking at besides the 93500 price
They are watching trading volume momentum indicators like the RSI and broader market sentiment They also monitor Bitcoins dominance and the performance of major altcoins
7 Is this just about charts or are there fundamental factors too
While this is a technical test its happening within a broader context Fundamental factors like spot Bitcoin ETF inflowsoutflows macroeconomic news and regulatory developments can all influence whether the breakout succeeds