Since reaching its all-time high (ATH) on May 22nd at an impressive 112,000, Bitcoin (BTC) has entered a corrective phase that has caught the attention of traders and analysts alike.
After a strong and relentless move to the upside, such a phase is not uncommon in crypto markets, where rapid rallies are often followed by cooling-off periods. As of now, BTC is trading at around 101,000, marking a decline from its peak but still maintaining a significant portion of its recent gains. This retracement has not only been healthy in terms of price structure but also offers potential opportunities for those closely monitoring key technical levels.
4H FVG:
One important aspect of the move leading up to the ATH was the formation of a 4H Fair Value Gap (FVG). These imbalances, left behind during aggressive moves in the market, are often revisited and filled as part of a broader effort by price to return to equilibrium. The current FVG spans from approximately 100,500 to 99,800. This range is especially noteworthy, as such gaps tend to act as magnets for price action, creating zones of potential support where buyers may step in to defend the structure. As BTC approaches this region, it's plausible to expect at least a temporary bounce, particularly if market sentiment remains constructive.
Golden Pocket Fibonacci:
Adding further weight to this zone is the confluence of the Golden Pocket, the area between the 0.618 and 0.65 Fibonacci retracement levels, derived from the latest upward leg. This specific Fibonacci region is widely regarded in technical analysis as a high-probability reversal zone, often attracting significant buying interest. Interestingly, the Golden Pocket aligns almost perfectly with the aforementioned FVG, both residing in the 100,500 to 99,800 range. The overlapping of these two technical indicators strengthens the case for this area to act as a firm support level, or at the very least, a point where the ongoing correction could take a breather.
Conclusion:
Taken together, the alignment of the 4H FVG and the Golden Pocket around the 100,000 mark creates a technically compelling scenario. The psychological impact of a round number like 100,000 only adds to its potential as a battleground between buyers and sellers. If this zone holds, it could spark a notable bounce, either a temporary relief rally or potentially the beginning of a renewed leg to the upside, depending on broader market conditions.
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