Bitcoin had a decent start this year, but after a sharp rise and pullback, it briefly fell below the $90,000 mark, causing market caution to set in. Currently, analysts are watching several key levels to gauge the future direction.

Let's start with the bottom line below. $89,200 is considered a strong support level. If this breaks, Bitcoin might test $87,500. If even this level cannot hold, the short-term decline could accelerate significantly. Additionally, some analysts point out that if Bitcoin cannot stay above the $87,200 level in the long term, the correction could be even deeper in extreme cases.

Where is the resistance above? For a genuine rebound, Bitcoin needs to regain and stabilize within the $94,000–$95,000 range, with the most important factor being a close above this zone. Achieving this could restore market confidence, paving the way for a move above $100,000, with targets potentially reaching $102,000–$103,000.

Besides price levels, there's an often-overlooked signal—what are the big funds doing? Data shows that some large traders on Bitfinex are actively reducing their long positions. Don’t instinctively fear "closing positions"; historical experience tells us that this is often market self-cleaning of leverage, paving the way for the next big move. Similar situations occurred earlier this year, and after some consolidation, Bitcoin experienced a significant rally.

Overall, recent volatility may continue for a while, but as long as key support levels hold, Bitcoin still has the chance to accumulate energy for the next upward wave. For newcomers, instead of blindly chasing gains or panic selling, it’s better to remember these key levels—when the market truly reaches these points, you'll have more confidence in your decisions.