Original title: (Bears strike back, key support for BTC is around $88,000)
Original source: Bitpush News
On Tuesday, the cryptocurrency market continued its downward trend.
According to Bitpush data, Bitcoin continued to be under pressure after reaching a high of $95,000 in the early session. In the afternoon, bulls attempted to rebound but encountered bearish resistance at $94,800, once falling below $91,000. At the time of writing, Bitcoin was trading at $91,646, down 2% over the last 24 hours. The altcoin market performed even weaker, with over 90% of the tokens in the top 200 by market cap recording declines.
The current total market capitalization of cryptocurrencies is $3.14 trillion, with Bitcoin's dominance at 57.3%.
In U.S. stock markets, the S&P, Dow Jones, and Nasdaq indices all closed higher, rising 0.57%, 0.28%, and 0.63%, respectively.
The decline may be due to an overheated leveraged market.
Part of the reason for Bitcoin's decline may be due to excessive leveraged trading in the market, where such leveraged positions get forcibly liquidated during market fluctuations, leading to further price drops.
Data analysis platform IntoTheBlock expressed a similar view, stating that Bitcoin's pullback 'can be attributed to' the rise in funding rates, which ultimately led the market to trend bearish. However, as funding rates return to normal ranges, further leveraged liquidations should be limited.
Cryptocurrency futures market analyst Byzantine General noted that, from a volume perspective, Bitcoin's current price trend is similar to previous local tops. He stated, '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 retest the liquidity area near the psychological level around $90,000, and may even drop further to $85,000.
This is because Bitcoin rose very rapidly from November 6 to November 22, without showing a clear imbalance between buying and selling, and such rapid increases are usually followed by a subsequent pullback to balance supply and demand. Therefore, Bitcoin may retrace 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 cause Bitcoin's price to consolidate below $95,000 for a period.
Crypto research analyst CoinSeer believes that the important support for Bitcoin is in the $85,000-$88,000 range, and if it breaks below, it could trigger large-scale liquidation.
TradingView analyst TradingShot wrote: 'Yesterday's sharp pullback in Bitcoin caught the market off guard. There are several fundamental reasons behind this: firstly, the excitement following the elections is gradually fading, and secondly, there is 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 present in the last three cycles (including the current cycle). This channel starts from the strong rebound when the top was formed in December 2013. The top of that cycle was right at the 0.236 Fibonacci level, which has blocked upward movement during the bull markets on 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 blocked the rise 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 last two cycles, highs appeared at the 0.0 Fibonacci level, which is the top of the channel (marked by the red circle in the chart). The red point at the end of 2025 is not a prediction, just for comparison.'
TradingShot also noted: 'The duration of each bull market cycle has typically been about 150 weeks (1050 days), and 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 an exact price. Interestingly, even though BTC technically faced resistance, the current uptrend 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.'
Original link
Welcome to join the official community of Rhythm BlockBeats:
Telegram subscription group: https://t.me/theblockbeats
Telegram group: https://t.me/BlockBeats_App
Twitter official account: https://twitter.com/BlockBeatsAsia
