1. Summary:
Bitcoin price has dropped by more than 11% from its recent all-time high, sparking discussions on whether this marks a local top and how low the price could go in the coming days. Analysis suggests a potential bounce from the $88,000-$90,000 range, with historical patterns and technical indicators offering conflicting signals on the future direction of BTC price.
2. Key insights:
– Bitcoin price has experienced a significant decline of over 11% from its recent peak, leading to speculation on potential lower levels.
– Historical analysis shows similarities between the current price action and past patterns, with the possibility of BTC initially dipping towards $88,000 before rebounding.
– Technical indicators, such as bearish divergences on longer time frames, suggest a broader price correction may be underway, with key support levels to watch at $66,600 and $57,000.
– A potential breakout scenario from an ascending triangle pattern near $97,000 could lead to a bullish rally towards $114,650, while failure to hold support levels could result in a deeper correction below $90,000.
