Hey Binance Square family! 👋
Bitcoin (BTC) has recently entered a significant correction phase, retracing nearly 25% of its recent gains. Let's delve into the technical analysis to understand what's happening and what traders should be aware of.
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📊 Technical Breakdown: Key Levels to Watch
According to a recent analysis, BTC has encountered a correction aligning with the 200-period moving average on the 4-hour chart, marking a potential key support level.
Potential Support Levels:
First Support: $102,200 – A 25% correction from recent highs.
Second Support: $93,200 – A 35% retracement level.
Third Support: $84,100 – A 50% retracement level.
Fourth Support: $74,600 – A 75% retracement level.
If the current support at $102,200 fails to hold, BTC may test these lower levels.
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🔍 Market Sentiment and Divergence
Despite the correction, professional Bitcoin traders remain optimistic. Data from BTC futures and options indicate stable investment sentiment, with many traders positioned for a rebound.
However, a bearish divergence is emerging in the 30-day rate of change (ROC), suggesting weakening momentum. If BTC falls out of its bullish channel, it could test support at $100,000.
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⚠️ Risk Management: Stay Cautious
While the broader outlook remains positive, it's crucial to be prepared for potential further downside. A breakdown below $105,000 could lead to a test of the $100,000 support level. Traders should consider implementing stop-loss orders and monitoring key support levels closely.
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📌 Final Thoughts
Bitcoin's recent correction is a natural part of its market cycle. While the long-term bullish trend remains intact, short-term volatility is to be expected. Traders should stay informed, manage risks effectively, and be prepared for potential opportunities as the market evolves.
Stay tuned for more updates and happy trading! 🚀📊
*Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making trading decisions.*