Bitcoin rises above $82,000 led to strong confidence among investors. However, interesting technical analysis suggests that this rally may still be part of a correction structure and not the beginning of a clean impulsive breakout.
This distinction is important because analysis shows that Bitcoin is currently approaching a resistance band that could determine whether the rebound continues or if it falls into a new trap for those who buy late.
Bitcoin heads into major resistance zone
BTC price has increased This week it exceeded $80,000, Movement with strong support flow into Spot Bitcoin ETF. However, cryptocurrency analyst Tara is not convinced that this bullish move tells the whole story.
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Tara's Outlook is built around Bitcoin reaction to the macro 0.382 retracement level. According to analysts, Bitcoin price first broke through this level without doing anything. Establish stronger support It's below. This has created a situation where the price trend can still move higher, but the move could be fragile as the fundamentals beneath the rally are not as strong as bulls would like.
Therefore, Bitcoin failed to establish solid support after breaking above the key macro Fibonacci levels, leaving the asset exposed and currently entering the key resistance zone between $85,200 and $93,000.
Although the short-term structure has clearly improved from the lows of around $60,000 in early February, Tara's chart shows some overhead levels that are currently problematic. The first major red resistance level is around $85,288, which corresponds to the expected structural 0.382 retracement. Above that, the 0.5 retracement level near $93,099 poses a bigger test.
Based on analyst calculations, the current rally should be a counter-B wave move within a larger corrective ABC trend. The analyst said the B wave is one of the most deceptive stages of the market cycle, as it can lead traders to believe that the correction is already over. However, the $85,200 to $93,000 range represents an area where the B-wave rally could start to lose momentum.
What happens next? Crash risk
With Bitcoin price currently approaching resistance, the outlook is on what to expect based on what happens if there is a rejection in that zone. The next step could be to lower prices and penalize buyers who entered too late.
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The chart illustrates this exact possibility with two projected downward paths from the upper resistance area. One starts at about $85,000 and the other nears $93,000. Both routes suggest that rejection from the resistance band may occur. Bitcoin prices are shown below 60,000 dollars.
A sustained break above $85,200 Brings $93,000 region Take action. A clean move above $93,000 would weaken the bearish correction setup. At the time of this writing, Bitcoin is trading at $79,742. 2% decrease in Last 24 hours.
Featured image from Getty Images, chart from Tradingview.com
