Written by: BitpushNews
On Tuesday, the cryptocurrency market continued the pullback trend.
According to Bitpush data, after Bitcoin hit a high of 95,000 USD in the early session, it continued to face pressure. In the afternoon, bulls tried to rebound but encountered bearish resistance at 94,800 USD and briefly fell below 91,000 USD. At the time of writing, Bitcoin was trading at 91,646 USD, down 2% in 24 hours. The altcoin market performed even weaker, with over 90% of tokens in the top 200 by market cap recording declines.
The current total market value of cryptocurrency is 3.14 trillion USD, and Bitcoin's dominance is 57.3%.
In the US stock market, the S&P, Dow Jones, and Nasdaq indices closed higher, up 0.57%, 0.28%, and 0.63% respectively.
The reason for the decline may be due to an overheated leveraged market.
The decline in Bitcoin may partly be due to an excess of leveraged trading in the market, which can lead to forced liquidations when volatility occurs, causing further price drops.
Data analysis platform IntoTheBlock expressed a similar view, believing that Bitcoin's pullback 'can be attributed to' the rise in funding rates, ultimately leading the market to lean bearish. However, as funding rates return to normal ranges, further leveraged liquidations should be limited.
Cryptocurrency futures market analyst Byzantine General pointed out that, in terms of trading volume, Bitcoin's current price trend is similar to some previous local tops. He stated, 'At this point, Bitcoin is likely to experience a period of sideways consolidation. However, during this time, some other cryptocurrencies may perform well.'
From a technical perspective, Bitcoin may test the liquidity area near the psychological barrier of around 90,000 USD again, or it may further drop to 85,000 USD.
This is because Bitcoin rose very quickly between November 6 and November 22, without showing a significant imbalance between buying and selling. Such rapid rises are usually accompanied by subsequent pullbacks to balance supply and demand. Therefore, Bitcoin may retract to previous support levels or lower to digest the previous gains.
Additionally, as the Relative Strength Index (RSI) fell below 50 for the first time since November 6, it is expected that sellers will dominate price movements in the coming week, which may lead to Bitcoin prices consolidating below 95,000 USD for a while.
Cryptocurrency research analyst CoinSeer believes that the important support for Bitcoin is in the range of 85,000-88,000 USD, and once it breaks below, it may trigger a large-scale chain liquidation.
TradingView analyst TradingShot wrote: 'Yesterday's significant pullback in Bitcoin caught the market off guard. There are several fundamental reasons behind this: first, the excitement after the elections is gradually fading; second, the psychological barrier of 100,000 USD is causing pressure. However, there is a more important technical reason that has been overlooked.'
Analysts pointed out: 'As shown in the chart, there has been a Fibonacci channel in the past three cycles (including the current cycle). This channel started from the strong rebound at the formation of the top in December 2013. The peak of that cycle was exactly at the 0.236 Fibonacci level, which has blocked the rise in the bull markets of June 24, 2019, and May 11, 2024.'
TradingShot stated that the recent pullback was due to Bitcoin hitting 'the first real resistance of the bull market cycle.'
He explained: 'This is the Fibonacci trend line that has been blocking the rise recently (November 22). We can refer to it as 'the first real resistance of the bull market cycle', as this is the first major resistance level encountered before the bull market cycle peaks. In the past two cycles, peaks appeared at the 0.0 Fibonacci level, which is the top of the channel (the red circle in the image). The red dot at the end of 2025 is not a prediction, it's just for comparison.'
TradingShot also observed: 'The duration of each previous bull market cycle has been about 150 weeks (1050 days), so if this pattern repeats, the peak may occur at the end of September or early October.'
He pointed out: 'Trying to catch the peak and sell is much better than giving a precise price. Interestingly, although BTC is technically facing resistance, the current upward trend started from the low on August 5, 2024, right at the 1-week MA50 (blue trend line). Technically, as long as this trend line remains valid, the periodic bull market wave should be able to stay intact.'
