Cryptocurrency Analytics Firm Alphractal issued a key warning about Bitcoin’s price action, saying BTC should hold positions above $84,000 to avoid more aggressive revisions.
According to Alphractal, Bitcoin is currently sitting at the main support level within the CVDD (Cumulative Value Day) channel, a model designed to dynamically analyze support and resistance levels. The specific level of the problem is considered to be CVDD x 2.618. This is the Fibonacci Factor, which provides important support of $84,640.
Alphractal explains that this pattern has historically been extremely effective in identifying the bottom of Bitcoin prices across multiple market cycles. When a key level breaks within a CVDD channel, the price usually goes to the next support or resistance zone.
If Bitcoin consolidates over $84,000, the company suggests it could form a local bottom before making a new move towards an all-time high. However, failing to maintain this level for several days can lead to a greater reduction.
In the event of a breakout, Alphractal identifies two important downside targets.
- $64,700 is a level that coincides with Bitcoin’s all-time high in April 2021.
- $60,000 could serve as another major support zone.
If Bitcoin moves towards these lows, there could be strong bearish feelings in the market. However, the company says similar fixes occurred between May and July 2021, but Bitcoin eventually recovered, reaching a new high later that year.
*This is not investment advice.
