Bitcoin Faces Pivotal Test at $78K Support Zone

Bitcoin's price is approaching a critical technical test as it nears the $78,000 support zone. Trader Kaz expects buyers to step in around this area, potentially launching another advance.

Kaz's setup indicates that a rebound from $78,000 could push Bitcoin toward $83,000-$84,000. However, this scenario depends on short-term support holding, and rejection near $80,350 would keep downside risk in play.

The chart also highlights an area around $81,600 as a possible short-squeeze zone. If Bitcoin pushes through this region and clears the previous-day high of $82,000, the target of $83,000-$84,000 would come into focus.

However, if Bitcoin fails to defend the $78,000 support zone, it could weaken the expected rebound and raise the risk of a deeper correction. In this scenario, Kaz also expects Bitcoin to potentially trade toward $74,000-$75,000 around late September or October during what he described as a reversal pivot.

In addition to the short-term setup, Bitcoin is facing another major test at its 50-week moving average. The broader weekly structure shows Bitcoin near $79,669, while the 50-week SMA sits around $80,347. This places BTC directly below a technically important resistance area.