Author: BitpushNews
On Tuesday, the cryptocurrency market continued its correction trend.
According to Bitpush data, after Bitcoin hit a high of $95,000 in the early session, it remained under pressure. In the afternoon, bulls attempted to rebound but faced bearish resistance at $94,800, even dipping below $91,000 at one point. At the time of writing, Bitcoin's trading price was $91,646, with a 24-hour decline of 2%. The altcoin market performed even weaker, with over 90% of tokens in the top 200 by market capitalization recording declines.
The current total market capitalization of cryptocurrencies is $3.14 trillion, with Bitcoin's dominance at 57.3%.
In the US stock market, the S&P, Dow Jones, and Nasdaq indices all closed higher, up 0.57%, 0.28%, and 0.63%, respectively.
The reason for the decline may be the overheating of the leveraged market
Part of the reason for Bitcoin's decline may be due to excessive leveraged trading in the market, which leads to forced liquidations when the market experiences volatility, resulting in further price declines.
Data analysis platform IntoTheBlock expressed a similar view, believing that Bitcoin's correction '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 moment, 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 psychological level of around $90,000 again, and it may even further decline to $85,000.
This is because Bitcoin rose very rapidly between November 6 and November 22, without a significant imbalance between buying and selling. Such rapid increases are usually followed by corrections to balance supply and demand. Therefore, Bitcoin may retrace to previous support levels or lower to digest earlier gains.
Moreover, with the Relative Strength Index (RSI) breaking below 50 for the first time since November 6, sellers are expected to dominate the price trend in the coming week, which may lead Bitcoin to consolidate below $95,000 for a while.
Cryptocurrency research analyst CoinSeer believes that important support for Bitcoin is in the $85,000-$88,000 range, and once it falls below this range, it could trigger large-scale cascading liquidations.
TradingView analyst TradingShot wrote: 'Yesterday's significant correction in Bitcoin caught the market off guard. There are several fundamental reasons behind this: first, the excitement after the elections is gradually fading, and second, the pressure from the psychological level of $100,000. 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 over 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 was exactly at the 0.236 Fibonacci level of the cycle, which has blocked upward movement in the bull markets on June 24, 2019, and May 11, 2024.'
TradingShot stated that the recent correction 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 upward movement recently (November 22). We can call this 'the first real resistance of the bull market cycle' because it is the first major resistance level encountered before the bull market cycle peaks. In the past two cycles, the highs have appeared at the 0.0 Fibonacci level, which is the top of the channel (marked with a red circle in the image). The red dot at the end of 2025 is not a prediction, just for comparison.'
TradingShot also observed: 'The duration of each bull market cycle in the past has been about 150 weeks (1050 days), and if this pattern repeats, the peak may occur at the end of September or early October.'
He noted: 'Trying to catch the highs and sell is much better than giving a specific price. Interestingly, although BTC is technically under resistance, the current upward trend started from the low on August 5, 2024, which is exactly at the 1-week MA50 (blue trend line). Technically, as long as this trend line remains valid, periodic bull market waves should be able to remain intact.'
