Bitcoin is facing a critical moment! After dropping over 8.6% since Friday, BTC is now testing key support levels. Will it hold strong, or is a further breakdown on the horizon? Let's dive in! 📉🔍
🔥 Bitcoin Faces Key Support After Rejection at Resistance
Bitcoin struggled to break past the 50-day EMA near $98,000, which also aligns with the 0.382 Fibonacci resistance level. As a result, BTC has retraced back to the support zone between $89,160 and $92,560.
If this support fails, the next major level to watch is the 200-day EMA at $85,700. Beyond that, $71,285 - $73,800 acts as a strong support zone, with another 0.382 Fibonacci level in play.
💡 Key Takeaway: The trend remains bullish in the short to medium term, thanks to a golden crossover in the EMAs. However, mixed signals from indicators create uncertainty. 🤔
📊 Technical Indicators: Bullish or Bearish?
🔹 RSI (Relative Strength Index): Neutral, not giving clear bullish or bearish signals.
🔹 MACD (Moving Average Convergence Divergence): Bearish! The MACD lines are crossed downward, and the histogram is ticking lower.
🔹 EMAs (Exponential Moving Averages): Still favoring a bullish outlook, thanks to the golden crossover.
⏳ Short-Term Outlook: 4H Chart Shows Weakness
The 4-hour chart suggests bearish momentum:
❌ A death cross confirms the short-term downtrend.
📉 MACD lines are bearish, and the histogram continues to drop.
⚠️ RSI is oversold but lacks bullish divergence, signaling potential further downside.
To reverse the trend, BTC must reclaim $98,000, where strong Fib resistance lies. Otherwise, expect further dips before a recovery. 🚨
🔮 Weekly Analysis: Correction Phase Continues
Bitcoin has been in a six-week correction but still holds a medium-term bullish trend:
✅ EMAs maintain a golden crossover, supporting long-term growth.
📉 MACD histogram trends downward, signaling ongoing weakness.
🛑 The 50-week EMA at $76,520 could act as a critical support if BTC moves lower.
💭 Will the correction continue, or is a rebound near? Traders should watch these levels closely. 👀
🚀 Long-Term Trend: Bullish Momentum Holds Strong
Despite short-term volatility, Bitcoin’s long-term trend remains intact. Here’s why:
✅ As long as BTC holds above the golden ratio at $50,000, the bullish trend remains valid.
🔻 If BTC falls further, the 50-month EMA at $47,110 will act as final support before a deeper pullback.
📊 MACD is still bullish, but the histogram is turning bearish—something to watch!
Key Signal: The RSI is leaving overbought regions, a sign of cooling momentum.
⚖️ Bitcoin Dominance: Critical Resistance Ahead
Bitcoin's dominance is testing golden ratio resistance at 60.5%:
📈 If BTC breaks above, the next resistance zone is 71% - 74%.
📉 If BTC gets rejected, expect support at 54.7% or 48.5%.
👉 MACD lines are still bullishly crossed, suggesting dominance could rise further. However, the RSI is nearing overbought regions, meaning a pullback could be ahead.
🔥 Final Thoughts: What’s Next for BTC?
Bitcoin’s price action is at a make-or-break level. While bullish signals persist in the long term, short-term weakness suggests more volatility ahead. 🌊
💡 Key Levels to Watch:
🔹 Support: $89,160 - $92,560, $85,700, and $71,285 - $73,800.
🔹 Resistance: $98,000 and $102,500.
🚀 If BTC reclaims $98,000, expect a bullish push! But if $89,160 fails, prepare for a deeper correction. Stay tuned for more updates! 📉📈
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