Bitcoin has shown a strong move over the past week, reaching the predicted downside target.
The price action is currently hovering around key technical levels that influence market sentiment on both higher and lower timeframes.
Recap of Last Week:
Last week, it was noted that BTC had made a liquidity sweep, inversed the bullish daily FVG, and formed a fake-out, all pointing toward further downside movement. The target was set just above $103,000, and this was convincingly reached, with a decline of roughly 7–10%. The prediction played out accurately, and the market clearly demonstrated that the bears remain in control.
Daily Timeframe:
On the daily timeframe, it’s notable that the major low around $98,000 has not yet been taken out. At the same time, BTC is trading below a strong resistance zone just above the current price.
This area will be difficult to break and could create downward pressure, making a sweep of the $98,000 level more likely. However, if BTC manages to reclaim these resistance zones, sentiment could shift to a more bullish outlook, but for now, the bears are still in charge.
4h Timeframe:
On the 4-hour timeframe, there’s a 4h FVG located just above the current price.
From a technical standpoint, this is a logical area for a potential rejection.
The expectation is that BTC will first move up toward this FVG before facing a rejection and then drop again toward the $98,000 zone.
Death Cross:
A death cross may form within the next 1–2 weeks, occurring when the 50-day MA crosses below the 200-day MA. This is a well-known bearish signal, but historically, it often appears toward the end of a downtrend. In this cycle, we’ve already seen three death crosses, all of which either marked or came close to marking a bottom.
However, during 2017 and 2021, death crosses also appeared at the end of bull markets — followed by a sharp decline, and then a relief rally that pushed prices back above the death cross level. Therefore, it’s crucial to stay alert to whether this signals the end of the bull market or rather a final shakeout before a new rally.
Conclusion:
BTC has reached the expected downside target and is currently trading below strong resistance. It’s likely that BTC will first test the 4h FVG and then move toward the $98,000 zone.
The upcoming death cross could add pressure, but historically, such signals often mark the end of a downward phase. The coming weeks will be crucial in determining whether this is a deeper correction or the start of a new bullish impulse.
Trade at your own Risk 👍
Best Regards, Trade Cryptocurrency
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