#Bitcoin has four key factors, apart from news and market psychology, that have contributed to its dropāsomething we were expecting. Remember, every drop is a buying opportunity. The market is gathering its fuel to make a big move and explode upward.š So, these days are shopping timeš. Now, letās go through the four points:
1- CME Gap: Bitcoin had a CME gap between $103,670 and $102,470 that needed to be filled.
2- Bearish Divergence: It showed bearish divergence across most timeframes, which weāve illustrated on the chart.
3- Weak Buying Power: There hasnāt been strong buying power, and selling volumes have been higher.
4- Bitcoin Dominance: Dominance has made another move toward 59ā60%, likely to shake out weak hands and gather bullish fuel for the next rally.
šOn the chart, weāve identified two potential points where Bitcoin could rebound:
1- Around the 12H MA50: This is roughly at the bottom of the ascending channel and aligns with the horizontal support level at $98,292.61, making it a strong potential reversal point.
2- If the ascending channel breaks: #Bitcoin could drop to retest the 12H MA100, which is near the support zone between $93,010 and $92,310, before moving back up.
šāāļøIf Bitcoin reverses upward, the first target is šÆ$110,657, and the second target is šÆ$118,828. For now, weāll stick to this analysis and see how the market reacts.
š¤Avoid using leveraged trades under any circumstances until the market establishes its direction.