Bitcoin's Perilous Dip: Is a Deeper Sell-Off Looming?
Bitcoin has once again slipped below a critical support zone, sparking concerns among investors about whether the market is bracing for a more significant downturn. With selling pressure still very much present, traders are closely scrutinizing key price levels to determine if a final drop to lower support is on the horizon.
Price Faces Another Rejection
According to MakroVision Research, Bitcoin recently experienced a strong rejection, leading to a decisive breach below several crucial support points. The cryptocurrency has retreated into a range previously defined by lower prices, now trading beneath a critical resistance zone between $85,200 and $86,200. This sustained bearish pressure indicates a challenging environment for bulls. While early signs of a rebound are emerging in the very short term, these are largely viewed as technical counter-bounces rather than the start of a robust trend reversal. For a meaningful shift, Bitcoin must reclaim and hold above the $85,200-$86,200 region; otherwise, the prevailing short-term downtrend is expected to persist. If this reclaim fails, the risk of a continued downside acceleration increases, turning focus to the $72,300-$75,300 range, a historically significant support area that could mark a capitulation phase.
CME Gap Opens: Short-Term Volatility Expected
Further analysis from crypto analyst MartyParty points to an opening CME gap, anticipated to be filled by Sunday evening. This event is likely to fuel short-term volatility, prompting traders to monitor technical levels and liquidation activity closely. Several scenarios could unfold: one involves further liquidation of leveraged long positions, potentially completing a classic Wyckoff Spring pattern with the lowest 25x Binance liquidation currently around $79,350. Another possibility is a retest of secondary support at $81,800, which might offer a temporary floor. However, the most probable short-term scenario suggests a move up through $84,500 towards $86,463, followed by a retest of $84,500 as the CME gap closes, thereby completing a near-term Wyckoff accumulation setup.
