Bitcoin has been rising over the past 24 hours, but recent analysis suggests it may be part of a broader bear market aimed at sending Bitcoin lower even more sharply.
Bitcoin ($BTC) It hit an intraday high near $69,300 on Wednesday, marking a good start to April. However, analysis by market watcher TARA suggests it could fall 15% to below $60,000.
Important points
- Bitcoin’s recovery near $69,300 today retested the 0.618 Fibonacci retracement zone.
- According to our analysis, crypto leaders will retest this level, especially since they have not been able to fully secure liquidity.
- The RSI remains in oversold territory, positioning it for short-term upside.
- Once Bitcoin absorbs the remaining liquidity around $69,300, an even stronger decline could follow and pull Bitcoin towards $58,000.
Bitcoin reaches Fibonacci level
cod highlighted Today’s rally near $69,300 marks a retest of the 0.618 Fibonacci retracement zone. Bitcoin fell sharply from there, dropping to $68,200, but the move was still noteworthy.
According to her, the cryptocurrency leader will test this level again, especially since it has not been able to fully secure liquidity. By the way, the highest price was $69,273, which was about $30 short of this Fibonacci target.
Therefore, price movements in this area suggest that liquidity may still remain. Considering how close it is $BTC Even if the target is approached, the analyst does not exclude the possibility of another short move towards the same zone.
Moreover, the momentum indicators support this possibility, and the RSI indicates a possible second attempt at resistance. The RSI remains in oversold territory, a position where short-term upside is possible, lending weight to the idea that Bitcoin could regain $69,300 before changing direction.
Broader structure suggests continued downside
However, while this move may appear to be constructive in the short term, TARA suggested it fits within a broader remediation structure. He argued that attempts at higher prices appear to be part of a larger wave that continues to unfold.
Once Bitcoin absorbs the remaining liquidity around $69,300, the analysis suggests that an even stronger decline could continue. Notably, this was part of a broader 3rd wave pattern on the shared 4-hour chart.
The predicted recession points to the $58,000 region as the next major area of interest. Bitcoin would need to fall 15% from here to reach this low. Notably, this represents a significant decline from the February 6th low of approximately $60,000, and could mean the asset could reach its last low. Seen in October 2024.
Interestingly, this is not the first time market analysts have predicted Bitcoin to drop to $58,000. wall street giant Citigroup also shares this view.naming it as a bear target. $BTC This is against the backdrop of a weak macroeconomic background. This area is also close to the realized price of $54,000.
