The recent dip in Bitcoin's price, far from being just another market fluctuation, is being heralded by analysts as one of its most critical retracements in a long time. According to crypto market expert Tara, this ongoing correction is a fundamental preparatory phase, setting the stage for Bitcoin's next significant bullish rally and a potential major market bottom.
Decoding Bitcoin's Corrective Phase
Technical analysis, particularly the Elliott Wave theory, suggests that Bitcoin is currently navigating its fifth corrective wave. This phase is crucial and could see BTC's price descend to as low as $94,000 before a substantial recovery begins. Tara's analysis pinpoints a key Fibonacci Retracement zone between $103,400 and $104,900. This range, where Bitcoin's price intersects with its Moving Average and a 0.382 Fib level at $103,478, and a 0.5 Fib level aligning with $104,943, is expected to act as a pivotal resistance before the final leg down to the $94,000 target. Current market conditions reflect this bearish pressure, with trading volume having plummeted by over 48% and the Relative Strength Index (RSI) remaining weak at 33.96, indicating an oversold market.
Paving the Way for the Next Bull Run
This sharp price adjustment is vital for the market to reset and for the Relative Strength Index (RSI) to recover, thereby fostering conditions conducive to a bullish divergence. Such a divergence is a strong signal for establishing a solid bottom for BTC, which is a precursor to a renewed uptrend. While a short-term rebound to $104,000 might occur, the analyst predicts a subsequent 9.6% crash to $94,000, solidifying the market's bottom. This period of "pain" is deemed necessary for Bitcoin to build the robust support required for its "next leg higher." Market observers are advised to exercise patience, as the true bullish sentiment may not fully materialize until mid-December 2025.
