Bitcoin's recent price action has shown signs of decreasing momentum three weeks after reaching a new all-time high of $111,814. The leading cryptocurrency surged above $110,000 on Monday thanks to cooling U.S. inflation data and a temporarily weaker dollar.
However, the rally was short-lived. Profit-taking, exacerbated by geopolitical tensions between Israel and Iran, has contributed to a risk-averse environment that has pushed Bitcoin below $105,000 in the last 24 hours. This sharp change highlights a significant technical level that could determine whether Bitcoin maintains its upward trend or falls towards $94,000.
Final Fibonacci resistance holding the line
According to a new analysis shared by the pseudonymous cryptocurrency analyst XForceGlobal on the social media platform X, Bitcoin's current corrective structure could deepen if it does not surpass the 88.6% Fibonacci resistance level. The analyst noted that the bullish momentum that drove Bitcoin now appears to be losing strength.
The price zone around $110,500, marked by the 88.6% Fibonacci resistance, has not been convincingly broken, raising doubts about the strength of the current wave structure. Bitcoin tested this level twice earlier this week and, as the analyst pointed out, if this resistance level is not breached soon, there is a slight possibility of a deeper correction.
If this correction occurs, it would lead to the formation of a corrective wave C, with a distinct symmetry in an ABC corrective pattern. In this case of corrective wave C developing, the next central area of interest lies around the $94,000 level, an area that aligns with the completion of a larger impulsive wave 2.
