Bitcoin’s price has fallen below the key range of $90,742–$92,092, a level that has been significant since November. A previous decline below this range on January 13 was brief, reaching a low of $89,164 before recovering to an all-time high of $109,356 on January 20.

Following this peak, Bitcoin tested the floor again but experienced a breakdown that has accelerated recently. This floor has now become a resistance level, and buyers must reclaim it to regain market dominance.

Today, the low found support at $86,520, the 38.2% retracement of the August 2024 rally. If this level holds, it may indicate a retracement-driven correction instead of a complete reversal. However, for an upward trend to resume, the price must surpass the former floor, now acting as a ceiling.

Currently, sellers hold a technical advantage. The path ahead is clear for monitoring market movements.

The latest price action confirms the shift in control. After failing to hold that familiar support zone, pressure has mounted on buyers. The earlier rebound from January’s low briefly inspired confidence, but the continued struggle to reclaim lost ground suggests momentum has changed. Resistance where there was once support is rarely a welcome sign for those hoping for another strong climb.

Retracement levels provide useful context. With the latest dip halting at $86,520, there is still room to argue this is nothing more than a routine pullback within a broader trend. But hesitation around previous support levels often foreshadows further declines, especially when buyers show little strength in reclaiming lost territory. As long as this remains the case, the burden remains on those looking for a recovery to prove we are not in a deeper correction.

What follows from here depends on how this key threshold is handled. If buyers manage to absorb selling pressure and break upwards again, the short-term outlook improves. Otherwise, the risk remains that the market drifts further down, with the 50% retracement level near $83,940 likely to come into focus. That would mark a more decisive shift from simple retracement to something more protracted.

Momentum is in favour of continued downside unless demand reasserts itself convincingly. The need for a breakthrough above resistance remains clear. Until that happens, conditions favour caution.