Bitcoin price recently attempted to reclaim the $96,400 level as support after breaking above it bearish trend line. The cryptocurrency analyst emphasized why this level of support is crucial Another enhance in Bitcoin pricesas this could set the stage for a potential retest above the $100,000 all-time high (ATH).

Bitcoin price retests $96,400 to trigger rally to $100,000

Prominent cryptocurrency analyst Rekt Capital spoke on X (formerly Twitter) on December 4 inform his 518,000+ followers on Bitcoin’s current price action and future direction. The analyst suggested that if Bitcoin successfully tests the support level at $96,440, it could cause prices to enhance up to $100,068.

Sharing a price chart, Rekt Capital revealed that Bitcoin has been steadily retesting its streak of lower highs, setting them as key level of support. On his Bitcoin price chart, “lower highs” mean that each subsequent high point is lower than the previous one. This development is usually observed during a downtrend. However, since Bitcoin is currently treating these lower highs as support, it indicates a potential shift in the market, suggesting that prices may stabilize after dwindling.

Rekt Capital also highlighted that Bitcoin has been generating longer decline streaks, indicating that its price has dropped significantly over this period, but merchants entered. The analyst emphasized that Bitcoin is currently gaining liquidity at lower prices without breaking below a key support trend line.

A liquidity stop occurs when enormous order volumes are unexpectedly triggered at key price levels. In the case of Bitcoin, “liquidity grab” refers to a market falling to levels where: buy orders are groupedenabling huge players to make deals.

Rekt Capital revealed that as long as this trend continues, Bitcoin will eventually return higher to reclaim the $96,440 level. Regaining this key support will allow Bitcoin to achieve and even surpass $100,000 milestone.

Bitcoin bear scenario

Looking at the price chart provided by Rekt Capital, several support levels have been highlighted, indicating the price levels to which Bitcoin may fall if it fails to reclaim the $96,440 level. While still valid Bitcoin price action indicates that it could potentially reach $100,000, the analyst suggested that if the pioneering cryptocurrency fails to maintain support at $96,440, it could retest a lower support level around $91,070.

As indicated by the red line on the price chart, $91,070 is the critical price level for Bitcoin. If the cryptocurrency also falls below this level, this may occur crash to recent lows approximately $87,325. At the time of writing, Bitcoin is trading at $96,737, up 3.24% over the past week. A drop below the $87,300 level would mean a more than 10% collapse in Bitcoin’s current value.

Featured image created with Dall.E, chart from Tradingview.com