Bitcoin, holding $80,000 and done?...Warning of re-decline to $74,000

▲ Bitcoin (BTC)/AI generated image

Bitcoin (BTC) held the $80,000 level over the weekend and was approaching its weekly close, but traders believed that a retest of further downside was not yet over. Bitcoin moved towards the $81,000 vicinity, but the market put more weight on the possibility of continuing its upward trend after reconfirming a key support zone located below $80,000.

Cointelegraph reported on May 10 (local time), citing TradingView data, that Bitcoin avoided slipping below $80,000 again during the weekend, which was mostly flat. However, the rebound that had risen to around $83,000 during the week could not be sustained, and traders analyzed that Bitcoin needed to retest its support level.

The zone that market participants focused on is the bull market support band just below $80,000. This zone is a support area composed of two moving averages and has acted as a strong reversal zone in recent months. The analysis account Cryptic Trades stated that after Bitcoin was rejected from a higher timeframe resistance zone, it is most likely to retrace short-term to the 2-day bull market support band.

Cryptic Trades viewed that if Bitcoin continues to hold the higher timeframe support level around $75,000, which coincides with the support band and the April 2025 bottom formation zone, the most probable next move is a further upward trend. This implies that the short-term correction may not be the end of the uptrend but rather a process of confirming support for the next surge.

Trader Daan Crypto Trades also offered a similar perspective. He assessed that Bitcoin's initial move above the support band was not a clean breakout. He added that it needs to definitively clear the sticky price level in the low $80,000s and sustain itself above that zone for 1-2 weeks.

The release of the U.S. April Consumer Price Index (CPI) was also cited as a variable for Bitcoin's short-term movement. Cointelegraph reported that the CPI, scheduled to be released next Tuesday, is expected to show the impact of the U.S.-Iran conflict and rising oil prices on the economy. Trader Killa analyzed that while Bitcoin rebounded after the last two CPI releases, if it follows the pattern around the 2025 CPI release, large investors might reduce their risk exposure ahead of the event. He added that the bull market support band should be watched closely, and if that zone breaks, the $74,000 vicinity could also come into view.

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