Bitcoin Slips Below This Key Zone — Is A Final Flush Coming?

Overview

Bitcoin has recently dipped below a significant support zone, prompting speculation about a potential deeper sell-off in the market. With persistent selling pressure, traders are closely monitoring key price levels to determine if a final flush towards lower support is on the horizon.

Price Faces Another Rejection

According to MakroVision Research, Bitcoin has encountered strong rejection, leading to a decisive break below several critical support levels. The price has slipped back into the range of previous lows and is currently trading beneath a crucial green resistance zone. This zone is positioned between two price points, indicating that bearish pressure continues to dominate the market.

Despite the current bearish sentiment, there are early signs of a potential rebound in the very short term. However, without a timely and sustainable reclaim of the mentioned resistance zone, this rebound is likely to be viewed as a technical counter-bounce rather than a signal of a significant trend reversal. If Bitcoin remains capped below this resistance area, the broader short-term downtrend will persist.

From a tactical perspective, the $85,200–$86,200 region has emerged as a pivotal battleground for traders. A clear reclaim and sustained holding above this zone would serve as the first indication that selling pressure is beginning to diminish. This could lead to price stabilization and a possible relief rally. Conversely, if the reclaim attempt fails, the likelihood of further downside acceleration increases. In such a scenario, attention would shift to the $72,300–$75,300 range, which holds historical significance as a technically prominent support zone. This area could potentially act as a support and reversal zone if the market undergoes another phase of capitulation.

CME Gap Opens: What To Expect From Bitcoin This Weekend

Crypto analyst MartyParty recently highlighted that a CME gap is opening, which is anticipated to be filled by Sunday evening. This situation sets the stage for potential short-term volatility, with traders keeping a close eye on key technical levels and liquidation activity.

Several scenarios may unfold in the coming days. One possibility includes the continued liquidation of remaining leveraged longs, with the lowest liquidation point on Binance currently noted. This could lead to the completion of the classic Wyckoff Spring pattern. Another scenario involves a retest of secondary support at a specific price level, which may act as a temporary floor for Bitcoin’s price action. Should this support hold, Bitcoin might trade sideways or attempt to push toward a primary support level that has now turned into resistance.

The most probable scenario suggests a move upward through a specified price point, potentially followed by a retest on Sunday night as the CME gap is filled. This could complete the near-term Wyckoff accumulation setup.

From author

The current situation reflects the ongoing volatility and uncertainty in the Bitcoin market. As traders navigate these critical support and resistance levels, the outcomes of these scenarios will likely influence market sentiment and trading strategies in the near term.

Impact on the crypto market

• The failure to reclaim the $85,200–$86,200 resistance zone may signal continued bearish sentiment.
• A potential move towards the $72,300–$75,300 support range could indicate increased selling pressure.
• The opening of a CME gap may lead to short-term volatility and liquidation events.
• Key technical levels are crucial for traders to monitor as they could dictate the next movements in Bitcoin’s price.
• The ongoing market dynamics could affect broader cryptocurrency market sentiment and trading behavior.