Bitcoin's recent correction has brought the price back into a critical support zone after reaching an all-time high around $123,000. This correction may pave the way for new growth.
Key Technical Points
Bitcoin is influenced by a key support area that includes levels such as the value area low, VWAP, and the 0.618 Fibonacci retracement level. Testing these levels indicates the potential for a trend shift.
Market Structure
The correction has completed a full market auction. After losing the value area high, the price tested the value area low, which is typical behavior in range-bound markets. This suggests Bitcoin is still trading within a consolidation phase rather than entering a bearish trend.
Expectations for Future Price Action
Bitcoin must hold above the $115,200 mark to maintain the current range structure. If this support holds, a return to the $123,000 level is likely. A breakout above that resistance could lead to a new all-time high.
The current situation surrounding Bitcoin highlights its potential to rebound, provided that the key support holds. Investors are awaiting further market movements based on the retention of this zone.