Bitcoin's recent performance has not been ideal, with a weekly drop of about 3%, and the latest price hovering around $88,000. Earlier this week, it once fell to $84,500 but has since rebounded. On-chain data shows that the $88,000 level is a very important support level for Bitcoin, with about 400,000 Bitcoins 'locked up' here, providing some protective effect on the price.

If Bitcoin breaks below this support level, the next protection line is around $83,300; if that fails, the worst-case scenario could see it drop to $63,000, which was the starting point of the bull market in the last quarter of last year. Looking back, Bitcoin started rising from $63,000, doubling by October of the following year, but then it fell by 30%, leading many to question whether the bull market cycle is still ongoing.

To rebound, Bitcoin must break through several selling resistance levels. The first is just above the current price; next is $92,000, and there is another major resistance at $94,000. Last week, Bitcoin surged to $94,500 due to news of a Federal Reserve interest rate cut, but the rally was too strong, and after a pullback, it dropped about $10,000 in just a week.

Overall, Bitcoin is currently at a critical position, with support and resistance clearly defined, and future trends will depend on whether it can hold the support or break through the resistance.