Author: BitpushNews
On Tuesday, the cryptocurrency market continued its pullback trend.
According to data from Bitpush, after Bitcoin reached a high of $95,000 in the early session, it continued to face pressure. In the afternoon, bulls attempted to rebound but encountered bearish resistance at $94,800, briefly dropping below $91,000. At the time of writing, Bitcoin was trading at $91,646, down 2% in 24 hours. The altcoin market performed even weaker, with over 90% of the top 200 tokens 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, rising 0.57%, 0.28%, and 0.63%, respectively.
The reason for the decline may be that the leveraged market is overheated.
Part of Bitcoin's decline may be due to excessive leveraged trading in the market; when the market experiences volatility, these leveraged positions can be forcibly liquidated, leading to further price declines.
Data analytics 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 period, some other cryptocurrencies may perform well."
From a technical perspective, Bitcoin may test the liquidity area near the psychological barrier of around $90,000 again, and it may even fall further to $85,000.
This is because Bitcoin rose very quickly between November 6 and November 22, without showing a significant imbalance between buying and selling. This rapid rise is usually accompanied by subsequent pullbacks to balance supply and demand. Therefore, Bitcoin may retrace to previous support levels or lower to digest the previous gains.
Additionally, with the relative strength index (RSI) dropping below 50 for the first time since November 6, sellers are expected to dominate price movements in the coming week, which could lead to Bitcoin's price consolidating below $95,000 for a period of time.
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 cascading 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 excitement from the election is gradually fading; second, the psychological pressure from the $100,000 mark. 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 one). This channel started with a strong rebound from the top formed in December 2013. The peak of that cycle was right at the 0.236 Fibonacci level, which has blocked upward movement in the bull markets of June 24, 2019, and May 11, 2024."
TradingShot stated that the recent pullback is due to Bitcoin touching "the first real resistance of the bull market cycle."
He explained: "This is the Fibonacci trend line that has recently blocked the upward movement (on November 22). We can call it 'the first real resistance of the bull market cycle,' as this is the first major resistance level encountered by the bull market cycle before it eventually peaks. In the last two cycles, the highs appeared at the 0.0 Fibonacci level, which is the top of the channel (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 previous bull market cycle has been about 150 weeks (1,050 days), and if this pattern repeats, the peak may occur at the end of September or the beginning of October."
He pointed out: "Trying to catch the highs 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 cyclical bull market wave should be able to stay intact."
