[DigitalToday reporter Yoonseo Lee] Bitcoin is testing a long-term support zone again, and a warning has emerged that it could post its biggest weekly decline in years if it loses the $70,000 support level.

The market is focused on whether Bitcoin can hold the lower trendline of a rising wedge that has persisted for years, blockchain media outlet The Crypto Basic reported on May 28 (local time).

Crypto analyst MichaelXBT said Bitcoin has been moving within a rising wedge since the 2021 bull market. Bitcoin has fallen below $74,000 for the first time in about a month amid a broader market pullback, and MichaelXBT pointed to its movement within the rising wedge formed after the 2021 bull market. A rising wedge is cited as a pattern that appears when upward momentum weakens even as prices rise.

Bitcoin has not tested this zone many times. It tested the lower support line once in November 2022, when it slid to $15,400 after the collapse of FTX, and later rebounded. This year, Bitcoin also retested the trendline near $60,000 in early February, $64,900 in March and $65,000 in April before pulling back.

With the recent drop widening, market attention is again turning to the area around $70,000. MichaelXBT said a move down to $70,000 would amount to a retest of the lower trendline. He said that if this zone breaks, selling pressure could take control of the market, adding: "If the $70,000 level breaks, bears will be handsomely rewarded."

The key is not simply a break of support but the size of the weekly candlestick. MichaelXBT argued that if the lower trendline collapses, Bitcoin could record its largest weekly bearish candle in years. He did not provide a specific figure for how far additional declines could extend.

Other market participants said short-term weakness should be distinguished from a trend breakdown. Crypto market veteran Michaël van de Poppe (미하엘 판 더 포페) said in a recent analysis that "Bitcoin's weakness is not yet a sign of a new low." He said the current pullback could be a common pattern that often appears at month-end.

Van de Poppe said rebalancing by asset managers during this period could trigger a market pullback. He also noted that the current decline continued after Bitcoin faced resistance at $77,000. He warned that if it fails to hold key support zones, Bitcoin could slip further into the lower $60,000 range.

As a result, the market's short-term focus is narrowing to whether it can hold support around $70,000. If it defends this zone, the recent pullback could end as a repeated retest, but if it breaks, some have raised the possibility of a larger weekly decline and stronger bearish sentiment.

Bitcoin 10-Year Wedge Support: $70k If that level breaks, bears will be handsomely rewarded. It will ignite the largest red weekly candle Bitcoin has seen in years. History will be made. pic.twitter.com/0HqImRTD4s