Dear followers,
After the strong upward momentum last week, the price of Bitcoin (BTC) underwent a natural correction, retreating to test new support areas around the $87,000 level. This move comes amid increasing caution from investors after realizing significant profits.
What is driving this decline?
Profit Taking: The price reached very high levels, prompting investors to liquidate some of their assets, which is a healthy sign for the market.
Macroeconomic factors: Ongoing uncertainty regarding central bank decisions and inflation news increases selling pressure and makes investors more cautious.
ETF fund flows: Bitcoin spot ETFs have recently experienced negative or neutral net inflows, affecting the bullish momentum.
💡 A glimpse into the future: Is this just a pause?
Support test: The $86,500 - $87,000 area is an important technical support point. Bitcoin's ability to consolidate and stabilize above this level will be crucial in determining the next trend.
Relative Strength Index (RSI): After reaching overbought levels, the indicator's pullback now suggests that the market has entered a healthier position to continue rising in the medium term, provided buying volume returns.
The key to recovery: Resuming a strong bullish trend requires overcoming the nearby resistance at $88,500, then returning to test the $90,000 level.
📌 Remember: Volatility is an essential part of the bullish market cycle. Use the risk management tools available on Binance.
Do you think we will see a surge before the end of the year? Share your predictions! 👇
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