Original title: (Shorts strike back, key support for BTC near 88,000)
Original source: BitpushNews
On Tuesday, the cryptocurrency market continued its pullback trend.
Bitpush data shows that after Bitcoin touched a high of $95,000 in the morning session, it continued to face pressure. In the afternoon, bulls tried to rebound, but encountered bearish resistance at $94,800, briefly dropping below $91,000. At the time of writing, Bitcoin's trading price was $91,646, down 2% in 24 hours. The altcoin market performed even more weakly, with over 90% of the top 200 tokens by market capitalization recording declines.
The current total market value of cryptocurrencies is $3.14 trillion, and Bitcoin's dominance is 57.3%.
In the U.S. stock market, the S&P, Dow Jones, and Nasdaq indices all closed higher, rising by 0.57%, 0.28%, and 0.63%, respectively.
The reason for the decline may be the overheating of the 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 during market fluctuations, causing prices to fall further.
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 noted that, based on trading volume, Bitcoin's current price movement 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 level of around $90,000 again, and it might even drop further to $85,000.
This is because Bitcoin rose very quickly from November 6 to November 22, without a significant imbalance between buying and selling. This rapid increase is usually followed by a pullback to balance supply and demand. Therefore, Bitcoin may retrace to previous support levels or lower to digest the previous gains.
Furthermore, as the Relative Strength Index (RSI) has fallen 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's price consolidating below $95,000 for a period.
Cryptocurrency research analyst CoinSeer believes that the important support for Bitcoin is in the $85,000-$88,000 range, and a drop below this level could trigger large-scale liquidations.
TradingView analyst TradingShot wrote: 'Yesterday's significant pullback in Bitcoin caught the market off guard. There are several fundamental reasons behind this: first, the post-election excitement is gradually fading, and second, the pressure from the psychological level of $100,000. However, there is another more important technical reason that has been overlooked.'
Analysts pointed out: 'As shown in the chart, there is a Fibonacci channel that has been present in the past three cycles (including the current cycle). This channel started with a strong rebound when the top was formed in December 2013. The top of that cycle coincided with the 0.236 Fibonacci level, which has blocked upward movements in the bull markets of June 24, 2019, and May 11, 2024.'
TradingShot stated that the recent pullback is due to Bitcoin hitting 'the first real resistance of the bull market cycle'.
He explained: 'This is the Fibonacci trend line that blocked the rise recently (November 22). We can call it 'the first real resistance of the bull market cycle' because this is the first major resistance level encountered before the bull market cycle peaks. In the past two cycles, the highs occurred at the 0.0 Fibonacci level, which is the top of the channel (red circle in the figure). The red dot at the end of 2025 is not a prediction, just for comparison.'
TradingShot also observed: 'The duration of each past bull market cycle is about 150 weeks (1050 days). If this pattern repeats, the peak may occur at the end of September or early October.'
He pointed out: 'Trying to catch the highs and sell is much better than giving a precise price. Interestingly, even though 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 speaking, as long as this trend line remains valid, the periodic bull market wave should be able to stay intact.'
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