Bitcoin News Today: Bitcoin Must Hold $98K to Prevent Bearish Breakdown Experts Warn Critical Level Key to Avoid 17% Drop Bitcoin Buyers Test $98K Support Twice, Margin Shrinks

Bitcoin’s price has entered a critical juncture as analysts from B2binpay caution that maintaining a support level of $98,300 is essential to prevent a prolonged bearish correction. The cryptocurrency, which recently fluctuated between $111,945 and $115,365, has drawn attention for its inability to sustain movement above $120,000 despite hitting a peak of $118,236 on July 26. The analysts emphasize that while Bitcoin has shown resilience in reversing short-term losses, its failure to break through key resistance levels has raised concerns about shifting market sentiment [1].

The recent dip below $115,000 on July 25 triggered widespread liquidations, with millions of dollars in long positions lost. However, the price rebounded swiftly, closing above $116,000 and briefly touching $118,236 the following day. B2binpay analysts argue that this volatility signals a strategic consolidation phase rather than a definitive bearish trend. They highlight that Bitcoin remains within a bullish framework as long as it holds above $98,300, a threshold they describe as a “pivotal reversal point.” A breakdown below this level could trigger a cascade of stop-loss orders and institutional selling, potentially dragging the price to $89,500–$85,400 [1].

According to the analysis, Bitcoin’s current trajectory hinges on its ability to avoid deeper corrections. The analysts note that the cryptocurrency has already tested the $98K level twice in recent weeks, with buyers stepping in to prop up the price each time. However, they caution that such interventions are becoming less frequent, narrowing the margin for error. “The support is still intact for now, but the margin for error is shrinking,” they stated, underscoring the fragility of the bullish case [1].

The analysis further outlines potential scenarios: if Bitcoin successfully defends $98K, it could see renewed upward momentum, potentially retesting $127,700. Conversely, a sustained move below $98K would invalidate the bullish narrative, necessitating a 17% drop to confirm a bearish trend. The analysts argue that this scenario is less likely given the current market structure, where aggressive buying from long-term holders has repeatedly curtailed downward pressure [1].

Market participants are advised to closely monitor the $98K level as a barometer of broader confidence in Bitcoin’s utility as a store of value. The absence of robust institutional inflows or macroeconomic catalysts has left the asset more susceptible to retail-driven sentiment shifts. Analysts stress that the outcome of this price contest will shape near-term trading strategies and risk management approaches, particularly as regulatory uncertainties persist [1].

The situation highlights the delicate balance between technical analysis and market psychology. A successful defense of $98K could rekindle bullish momentum, allowing Bitcoin to retest the $110K–$106K range and beyond. However, a failure to hold above this level may force a reevaluation of the asset’s trajectory, with implications for investor confidence and liquidity dynamics.

Source: [1] [Bitcoin Must Stay Above $98K to Avoid Bearish Breakdown, Experts Say] [https://news.bitcoin.com/bitcoin-must-stay-above-98k-to-avoid-bearish-breakdown-experts-say/]