BTC may retest the key support level at $73,835, laying the foundation for subsequent upward momentum

BlockBeats news, on February 28th, analyst Omkar Godbole stated that financial markets, often driven by human emotions, tend to show that when asset prices break through long-term resistance levels, they usually pull back to confirm the validity of the breakout. This testing of the ‘resistance to support’ level could lay the foundation for a larger rise in the future. The phenomenon of ‘breakout and pullback’ is common in various asset performances, and BTC’s current dumping may be a healthy retest of this pattern: prices are testing the key resistance turned support level at $73,835, which was broken in November 2024. The breakthrough at that level marked the end of months of consolidation, coinciding with Trump’s victory in the U.S. presidential election. The market tends to pull back after a breakout to confirm the effectiveness of support, stemming from investors’ tendency to avoid risks. According to prospect theory, traders tend to lock in profits quickly rather than let them continue to rise, leading to a sudden halt in the rise after a breakout and triggering a retest of the breakout point. For example, BTC holders have been taking profits near the $100,000 mark since December 2024. Currently, BTC has fallen over 15% from its February high, dropping below $80,000 and approaching the $73,835 support area. If this level successfully stops the decline, investors who missed the initial rise may get on board, triggering a rebound and attracting more buying interest, potentially brewing a larger rise. However, it should be noted that if the retest fails or the rebound is weak, it may signal a risk of trend reversal. The BTC weekly chart shows a typical breakout retest structure, and if it holds above $73,835, it could pave the way to target $150,000. This assessment is consistent with the technical formations in 2020 and 2023, but traders need to be cautious of risks brought about by macroeconomic policy changes and market sentiment fluctuations.