Bitcoin Battles Key Support Above $89,000 After Largest Drawdown Of The Cycle

Source: ETHNews Original Title: Bitcoin Battles Key Support Above $89,000 After Largest Drawdown Of The Cycle Original Link: https://www.ethnews.com/bitcoin-battles-key-support-above-89000-after-largest-drawdown-of-the-cycle/ Bitcoin is currently trading around a critical technical zone after experiencing its deepest drawdown of the current market cycle.

According to Daan Crypto Trades, price action is now centered around a former support and resistance area between $88,000 and $90,000, a level that has become pivotal for short-term market direction.

The attached chart shows Bitcoin repeatedly testing this zone after a sharp sell-off, highlighting its importance as a decision point for both buyers and sellers.

$88K–$90K Emerges As The Market’s Line In The Sand

The Tradingview chart illustrates Bitcoin slipping into the $88K–$90K region following heavy spot selling pressure. This move coincided with broader market fear tied to cycle-ending narratives, which intensified downside momentum.

Despite the volatility, price has not decisively broken below this range. Instead, Bitcoin is consolidating near former structural levels, suggesting that this zone is acting as an area of active demand rather than immediate capitulation.

Daan notes that holding this support is crucial for bulls, as losing it could reopen lower price territory and invalidate the current stabilization attempt.

Selling Pressure Peaks As Downtrend Loses Momentum

According to the analysis, the recent decline represents the largest drawdown of the cycle so far, driven primarily by aggressive spot selling rather than leverage cascades. The chart reflects this with sharp downward moves followed by choppy consolidation, signaling exhaustion on the sell side.

Importantly, the daily downtrend appears to have stalled, with price no longer making clear lower lows. This suggests that bearish momentum is weakening, even if bullish confirmation has not yet arrived.

Bulls Need A Break Above $94K For Confirmation

While short-term demand is visible near current levels, Daan emphasizes that a full bullish market structure flip has not yet occurred. For that confirmation, Bitcoin would need to reclaim and hold above $94,000, a level that marks the upper boundary of recent resistance.

Until that happens, the market remains in a transitional phase, where reactions around high-timeframe levels will dictate the next major move. The coming sessions will be critical in determining whether this consolidation becomes a base for continuation—or a pause before further downside.