Bitcoin is at a pivotal point as its macro retracement aligns with a tight mid-range tussle between $86,000 and $100,000. With bearish patterns established and short-term support holding steady, the market now anticipates whether bulls can regain momentum or if a more significant pullback looms ahead.
Bitcoin Validates Macro Top: Bearish Cycle Initiated
According to an update from Crypto Patel, Bitcoin seems to have confirmed a market peak, entering a more extensive macro retracement phase. The breakdown of a crucial bullish support level has altered the market structure into a bearish mode.
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The chart indicates that a Head and Shoulders pattern has fully unfolded. Standard technical indicators suggest that the 162% downside projection has been hit, supporting the view that a cycle top has formed and a more substantial trend reversal is in motion.
Analyzing the macro Fibonacci retracement from the bear-market low to the recent high, several critical levels come into play. Notable points include the 0.382 retracement around $56,700, and the 0.5 level near $44,000, which could act as potential bear-market acceptance zones. Furthermore, the 0.618 retracement close to $35,000 stands out as the most robust long-term support zone.
On the liquidity front, an unaddressed fair value gap between $98,000 and $100,000 acts as a pull for a short-term relief rally before the larger downtrend resumes. Overall, the macro perspective for Bitcoin remains bearish.
While a rally towards the $98,000–$100,000 zone is feasible, the primary trajectory suggests a deeper dive into the $70,000–$60,000 Fibonacci supports. Traders should await confirmation and maintain flexibility, keeping in mind various scenarios as the market progresses.
BTC Stuck: $96,000–$100,000 Ceiling Meets $86,000 Support
Bitcoin remains trapped between two vital areas as mentioned by CyrilXBT. The price hovers around the $90,300 mark after facing another rejection from the $96,000–$100,000 supply zone and the 50-day EMA. This region has consistently limited upside attempts in recent weeks.
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On the downside, buyers continue to emerge around the $86,000–$88,000 demand zone, preventing a price drop into a more significant breakdown and keeping BTC confined within its current range. From a broader market standpoint, Bitcoin previously tempered while tech stocks rallied. As momentum in tech starts to wane, BTC is trying to stabilize, but a firm reclaim of the $96,000–$100,000 zone remains essential for shifting momentum.
A sustained breakthrough above $100,000 would pave the way for a trend reversal. Conversely, losing the $88,000 support could subject Bitcoin to a deeper decline towards the $72,000–$76,000 area. Until either outcome materializes, price action stays volatile, and patience is crucial.
Featured image from Pixabay, chart from Tradingview.com
