Bitcoin’s recent price action is showing some signs of slowing down, about three weeks after hitting a record high of $111,814.
A Short-Lived Rally
After briefly climbing back above $110,000 on Monday (thanks to some positive economic news and a weaker dollar), Bitcoin’s price quickly dropped. Profit-taking, along with some global political tension, created a sell-off, pushing Bitcoin below $105,000 in just 24 hours. This sharp drop highlights a key technical level that could determine whether Bitcoin continues its upward trend or crashes towards $94,000.
Fibonacci Resistance: A Crucial Level
A crypto analyst, XForceGlobal, suggests that Bitcoin’s current price correction could get worse if it can’t break through a specific Fibonacci resistance level (88.6%). This level is around $110,500. Bitcoin has tested this level twice already this week, and a failure to break through could mean a bigger price drop.
The Potential Wave Pattern
If this happens, it could form a “corrective wave C,” part of a larger ABC pattern. This would likely push Bitcoin down to around $94,000 – a level that aligns with the end of a broader “impulse Wave 2.”
This analysis assumes that Bitcoin won’t break through the $110,000 Fibonacci resistance. The recent high of $111,814 is considered a “bullish impulse Wave 1.” The current correction is seen as a “corrective impulse Wave 2,” potentially leading to a drop to $94,000.
Looking Ahead: A Bullish Outlook?
Despite this potential dip, XForceGlobal still sees Bitcoin’s overall trend as bullish. After this predicted drop to $94,000 (Wave 2), they anticipate a strong upward reversal (“bullish impulse Wave 3”), potentially pushing Bitcoin to a new all-time high above $118,500.
At the time of writing, Bitcoin is trading around $105,000, down 2.5% in the last 24 hours.
