As Bitcoin (BTC) breaks out of key resistance levels, an analyst suggests that the cryptocurrency is positioning itself for a move to higher levels and a retest of a crucial technical area in the coming weeks.

Bitcoin Approaching Make-Or-Break Test

On Tuesday, Bitcoin surged 2.5% to retest the $93,500 resistance level for the first time in a week. The cryptocurrency has been hovering between the $84,000 to $93,500 price range for three months and has failed to turn this level into support multiple times.

Analyst Rekt Capital recently noted that the flagship crypto is near a “historic” test as it has begun to form “another technically decisive region” just above current price levels.

The market watcher explained that BTC is approaching its dynamic Bull Market Exponential Moving Average (EMA) cluster, where the 50-week EMA and 21-week EMA are getting closer.

This key cluster, currently located between the $96,000 and $97,500 levels, has historically been tested before a “meaningful crossover,” with the Bitcoin price overextending beyond the cluster.

However, this has usually been followed by an unsuccessful confirmation of this region as support. “When that happens, the crossover itself often follows the bearish price event, rather than causing it, with the EMA cluster flipping into resistance from the underside and leading to downside continuation,” the analyst detailed.

Notably, past cycles reveal that the 50-week and 21-week EMAs can move very close together, Rekt Capital wrote, emphasizing that they can even overlap for prolonged periods before a decisive crossover.

Currently, Bitcoin has yet to retest and overextend beyond the two EMAs, but its historical performance suggests that it will likely occur. Moreover, BTC’s price is “positioning itself in a way that could allow for a springboard higher, potentially enabling a test of this cluster in the weeks ahead. The key question is timing.”

BTC Price Breaks Out Of Key Resistances

In his analysis, the market observer discussed BTC’s recent performance, which has seen a structural change despite the sideways price action. Last week, the cryptocurrency’s price closed above its multi-week downtrend, which has been serving as a major resistance point since late November.

This marks “a small but notable technical milestone” as Bitcoin now holds above the November and December highs in the weekly timeframe, treating the previous resistance as support.

In addition, the mid-zone of its local range, around the $90,500 level, is now “almost perfectly confluent with the former Downtrend, meaning the Downtrend that last week rejected price is beginning to act as layered support instead.”

Therefore, if Bitcoin continues to hold the mid-range region, the price should be able to challenge higher levels and find a path toward $100,000. Rekt Capital added that, unlike previous retests, the most recent rejection from the crucial $93,500 resistance was significantly shallower and shorter, suggesting that it was getting weaker.

Now, the flagship crypto has successfully retested the downtrend breakout area as support and momentarily reclaimed the $93,500 resistance, surging above the $94,000 area once again.

Ultimately, BTC will need to hold this area and close the week above $93,500 to “kickstart a breakout from the Weekly Range as per previous green circles,” the analyst concluded.

As of this writing, BTC trades at $94,334, a 2.6% increase in the weekly timeframe.

Bitcoin is pressing above the $92,000 level after an eventful start to 2026 marked by intensified geopolitical and political developments. In early January, the United States launched a military operation in Venezuela, resulting in the capture of President Nicolás Maduro and significant upheaval in regional politics and energy markets. This action formed part of a broader US campaign against illicit networks and pressure on Caracas, with implications for global oil flows and uncertainty in macroeconomic sentiment across markets.

Simultaneously, tensions between Federal Reserve Chair Jerome Powell and US President Donald Trump over monetary policy and institutional independence have added another layer of volatility. In a rare and pointed statement, Powell framed the situation as a direct consequence of central bank independence, saying: “The threat of criminal charges is a consequence of the Fed setting rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”

Despite these headline risks, Bitcoin’s price action has entered a period of calm, with realized volatility compressing to historically low levels. Such low-volatility regimes typically reflect a temporary balance between supply and demand.

In past cycles, extended calm like this has often preceded periods of significant volatility and range expansion, as accumulated imbalances resolve with sharp directional moves. This sets the stage for a potentially decisive breakout as participants await clearer catalysts while price hovers near the critical $92K threshold.

Volatility Compression Signals A Market Near Inflection

A recent analysis by Axel Adler highlights a critical shift in Bitcoin’s market structure: realized volatility has compressed to 23.6%, placing it near the lower end of this cycle’s historical range. Rather than signaling direction, this drop in volatility reflects a market that has temporarily lost momentum, with price swings narrowing and impulse strength fading. In past cycles, similar conditions have rarely persisted for long.

From a structural standpoint, this environment suggests that Bitcoin is in a classic compression phase. As volatility contracts, underlying imbalances between supply and demand tend to build quietly beneath the surface. When these imbalances reach a tipping point, price typically transitions from stability into expansion—often abruptly.

This view is reinforced by Bitcoin’s 30-day high–low range. The gap between recent rolling highs and lows continues to tighten, confirming that price is coiling within an increasingly narrow band. Both intraday and multi-day fluctuations have diminished, and neither buyers nor sellers have been able to assert sustained control.

Historically, breakouts from such compressed ranges tend to attract algorithmic and trend-following capital, amplifying follow-through once price escapes the range. While this setup does not guarantee an upside or downside resolution, it does suggest that the probability of a decisive move is rising. With volatility and range metrics aligned, Bitcoin appears to be approaching a moment where consolidation gives way to renewed directional conviction.

Bitcoin Price Reclaims $92K as Structure Slowly Improves

Bitcoin is attempting to reclaim the $92,000 level after several weeks of consolidation following the sharp November drawdown. On the daily chart, price has formed a clear base in the $86K–$88K region, where aggressive selling pressure was previously exhausted. Since then, BTC has printed a sequence of higher lows, signaling a gradual shift from distribution into short-term accumulation.

The recent push above the descending short-term moving average reflects improving momentum, although the broader structure remains mixed. Price is still trading below the declining mid-term trendline and well under the longer-term moving averages, which continue to act as overhead resistance near the $98K–$105K zone. This suggests that, while downside pressure has eased, Bitcoin has not yet re-entered a strong bullish trend.

Volume remains relatively muted during the rebound, indicating that the move is driven more by reduced selling than by aggressive new demand. This aligns with a market transitioning into stabilization rather than immediate expansion. The $92K area now represents a critical pivot: holding above it would confirm acceptance at higher levels and open the door for a broader range rotation toward $96K–$100K.

Failure to sustain this breakout, however, would likely keep BTC trapped in a consolidation range, with downside risk returning toward the $88K support. For now, price action suggests cautious recovery rather than trend reversal.

Featured image from ChatGPT, chart from TradingView.com