Bitcoin at a Critical Crossroads:
Bitcoin is currently at a crucial juncture, trapped in a narrow range between support levels of $86,000-$88,000 and resistance levels of $96,000-$100,000. Recent price action shows BTC fluctuating around $90,000, with recent 4-hour candles indicating accumulation between $89,700 and $90,600.
Key information:
- The Head and Shoulders pattern has completed, indicating a bearish phase may be underway.
- Important Fibonacci retracement levels to watch: $56,700 (0.382), $44,000 (0.5), and $35,000 (0.618).
- The unfilled fair value gap between $98,000-$100,000 may attract a rebound.
- The 50-day EMA continues to constrain bullish efforts.
Although short-term support is currently holding, traders should prepare for two scenarios: a breakout above $100,000 signaling a trend reversal, or a breakdown below $86,000 that could trigger a deeper correction to the $72,000-$76,000 range.
The market is still highly volatile - patience and caution in determining the recommended position size while this range is being resolved.
Content is for reference and discussion only, not investment advice.
