Can Bitcoin Rebound After Falling Below Key Fibonacci Support?

Bitcoin (BTC) has dipped below a significant Fibonacci level, but signs like a recent Golden Cross hint at a possible rebound. Current market conditions show both cautious investor sentiment and key price levels that traders should watch.

Key Takeaways

Bitcoin is currently priced at $90,230, down 2.3% in the last 24 hours and 3.5% over the past week.
It has fallen below a critical Fibonacci support level, with immediate support around $89,600 and resistance near $94,000.
A newly formed Golden Cross indicates potential for upward movement, as historically, similar signals have led to significant price rallies.
Key Fibonacci levels to monitor include $88,969.23 as next support and $87,363.58 for further critical support.

Bitcoin (BTC) has seen a decline of 2.3% over the past 24 hours, currently trading at $90,230. During this time, the price has fluctuated between $89,623.50 and $94,177.16. Over the past week, Bitcoin has dropped 3.5%, while its performance over 30 days shows a 14.1% decline. In addition, Bitcoin has experienced an 8.0% decrease over the past year.

In terms of market sentiment, Bitcoin encounters significant resistance near the $94,000 mark, with the $89,600 level acting as an immediate support point. The market has reacted cautiously to the Federal Reserve's recent interest rate cut, leading to difficulties for Bitcoin and other cryptocurrencies in gaining upward momentum, despite favorable macroeconomic conditions.

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Is Bitcoin Testing Critical Support Levels?

Bitcoin is currently navigating through essential Fibonacci retracement levels that have historically served as support and resistance areas. The price recently dipped below the 0.236 Fibonacci level at $90,959.88, a point that previously provided immediate support.

Bitcoin 1-Day Price Chart

Next, the 0.382 level at $88,969.23 stands out as another potential support area. If Bitcoin fails to hold above these levels, it may experience further declines, with the 0.5 Fibonacci level around $87,363.58 acting as a crucial support zone. Additionally, the Stochastic RSI is reading 86.94, indicating that Bitcoin's momentum is slowing, which may suggest a cooling-off period or consolidation before any significant upward movement can occur.

If Bitcoin closes below the 0.236 level, the major support zone will drop to around $85,757.92 (0.618 level). Conversely, closing above the 0.236 level could help push Bitcoin toward higher resistance levels above $94,000.

Analysis of Bitcoin's Golden Cross

In another development, analyst Merlijn The Trader has noted that Bitcoin has just displayed another Golden Cross, marking the fifth occurrence of this signal. He highlights that the previous four Golden Crosses have led to substantial price increases, with Bitcoin surging by 87%, 47%, 78%, and 33%.

Bitcoin Price Prediction

According to The Trader, the current setup is "louder than ever," and he believes that the breakout potential for Bitcoin is now clear. While some investors may remain skeptical, this technical indicator may suggest strong potential for further upward movement, with a target above $170,000. A rise to $170,000 from the current price of $90,230 would represent an approximate increase of 88.3%.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed are those of the authors and do not necessarily reflect the opinion of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses.