Bitcoin is undergoing a crucial retest at the $97,700 level following a volatile period marked by a downside deviation to $96,100. Despite the dip, Bitcoin managed to close above $96,100, maintaining a higher low relative to the February 18th bottom. This price action suggests underlying strength, possibly setting the stage for another attempt to breach the $97,700 resistance. The recent exchange hack added to market uncertainty, but Bitcoin’s resilience hints at a potential bullish reversal.
According to Crypto Analyst @Rekt Capital on X,Bitcoin’s movement into the $97,700 zone is a significant retest of its recent breakout. Analysts emphasize the importance of Bitcoin closing above this level to confirm a successful retest. Historical patterns indicate that downside wicks could cause increased volatility, with prices possibly dipping to around $96,000. Nevertheless, a sustained close above $97,700 would signal strength and could set the stage for another bullish run.
The market is closely watching this level because it aligns with Bitcoin’s broader technical structure. Previous retests of breakout zones have been met with strong buying interest, suggesting that traders are willing to defend this support. If Bitcoin successfully retests and holds above $97,700, it would confirm the breakout and establish this level as a new support, potentially triggering a bullish continuation toward the next resistance at $101,165.
RSI Breakout: Bitcoin’s $97K Resistance Test
One of the most compelling indicators supporting Bitcoin’s bullish outlook is the Relative Strength Index (RSI). Following a breakout from its downtrend, the RSI successfully retested this trendline as support, confirming the end of its bearish phase. This technical development suggests increasing buying momentum and indicates that the market is regaining strength.
The RSI’s breakout is particularly significant because it has historically preceded major price rallies. By confirming support at this level, the RSI signals that Bitcoin’s downside is likely limited, and the cryptocurrency could soon revisit the $97,700 resistance. Traders are closely monitoring this indicator as it validates the ongoing retest and provides a bullish bias for the coming days.
The attached charts provide valuable insights into Bitcoin’s price action. Key resistance levels are highlighted by red circles at $106,148 and $101,165, where failed breakouts occurred. These levels represent significant selling pressure and will be crucial hurdles for Bitcoin to overcome in its next bullish attempt.
On the other hand, the green circles illustrate successful support retests around $96,843 and $91,070, showcasing strong buying interest at these levels. Notably, the convergence of the downtrend line with the $97,700 level indicates a critical point of contention between bulls and bears. If Bitcoin manages to break above this confluence, it would confirm a bullish breakout and likely lead to increased buying momentum.
Bitcoin’s current price action suggests that volatility is likely in the short term. The retest of $97,700 remains a make-or-break moment, with the market closely watching for a daily close above this level. If successful, it would validate the breakout and signal renewed bullish momentum. Conversely, failure to hold above $97,700 could trigger further downside pressure, potentially retesting support levels around $96,100 or even $94,000.
