Bitcoin could potentially fall to around $86K before making a move upward to $115K. At the same time, altcoins might experience a correction of about 20% to 30%. Here’s a detailed breakdown of why and when this could happen:
Bitcoin Analysis
Chart Insights:
The Bitcoin chart indicates that BTC has been rejected around the $99.6K area five times—with a false breakout on the fourth attempt. It’s now showing signs of recovery, trying to push past the $100K level. This level might serve as a good point to take some profits.
Volume & Price Patterns:
Red Box Bars: These bars, marked with upward wicks and average volume, suggest that the bulls are not strong enough to maintain upward momentum.
Green Ellipse & Red Box: Here, despite rising volume, the price isn’t following suit, indicating that sellers are taking control.
Support Levels & Liquidity Sweeps:
Horizontal dotted lines mark previous lows that BTC hasn’t fully cleared. It’s likely that Bitcoin will drop into the $86.7K to $88K range to sweep out liquidity before bouncing back—possibly reaching between $115K and $125K.
Why This Support Area Matters:
This zone is crucial because there isn’t a lower price area below these levels for Bitcoin to target. It also aligns with the 0.5 to 0.618 Fibonacci retracement levels. Additionally, we don’t expect a daily close below this support because $85K is a significant psychological level where many retail investors are likely to step in, anticipating a dip. Markets tend to avoid these common zones, which supports the expected bounce.
Trading Strategy:
Consider selling part of your position between the $98K and $99.6K range, then look to re-enter around the $86.7K to $88K level.
Altcoins Analysis
Many altcoins are already trading at or near their lows, so a massive drop similar to the previous 50%–60% decline is unlikely. Instead, expect a correction of around 15%–25% as market makers sweep liquidity below recent lows.
My Approach:
I plan to sell 50% of my altcoin holdings now while keeping 20% in USDT. Then, I’ll wait for a dip. Once my fundamentally strong coins clear these liquidity levels, I’ll buy in—most likely when BTC reaches the $88K zone.
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