Bitcoin Faces Critical Resistance Amid Corrective Price Pattern

Bitcoin is currently navigating a pivotal moment as it trades within a dense cluster of technical resistance levels. While recent momentum has favored bullish sentiment, several high time frame metrics suggest that this could be a setup for a deeper corrective phase.

Bitcoin Testing Key Resistance Levels

At present, Bitcoin is trading in a significant resistance region, where multiple high time frame technical indicators converge. Among these are the previous point of control, the value area low of a prior range, and the crucial 0.618 Fibonacci retracement level. This Fibonacci level aligns with the potential completion of the C-leg in an ABCD correction pattern, a widely recognized structure in technical analysis.

Key Points to Note:

  • Bitcoin is encountering resistance at the 0.618 Fibonacci retracement level, overlapped with major high time frame metrics.
  • The price structure resembles an ABCD corrective pattern, with the C-leg potentially completing at current levels.
  • Recent price action has been driven by short squeeze behavior, lacking organic buying support, which increases the likelihood of rejection.

The ABCD Corrective Pattern

The ABCD corrective pattern, commonly referenced in Elliott Wave Theory, is unfolding clearly on Bitcoin’s chart. This structure comprises three distinct waves:

  • A-wave: A pullback from recent highs.
  • B-wave: A continuation of the prevailing trend.
  • C-wave: A retracement that precedes a potential D-leg for further downside movement.

Currently, Bitcoin appears to be completing its C-leg around the $94,000–$95,000 resistance area. This zone includes confluence from the 0.618 Fibonacci retracement level and key high time frame daily support and resistance levels.

Lack of Organic Buying Raises Concerns

The recent rally in Bitcoin’s price appears to have been driven primarily by short covering, rather than healthy spot accumulation. This lack of organic buying is a concern for bullish traders, especially as the price encounters a dense resistance cluster. Volume has also been inconsistent, further highlighting the fragile nature of the rally.

“Volume remains inconsistent, and the market’s reaction at this level will likely determine Bitcoin’s next major swing direction.”

If rejection occurs at the current C-leg zone, it could trigger the D-leg pullback, completing the correction phase and potentially setting the stage for deeper price movements.

Potential Price Scenarios

Momentum traders and structure-based analysts are closely monitoring the $60,000–$67,000 zone, as it aligns with the projected D-leg of the ABCD pattern. This region holds a high probability of forming a macro higher low, which could support the broader trend and act as a foundation for the next impulsive wave.

What to Expect:

  • If resistance holds: Bitcoin may rotate lower toward the $60,000–$67,000 region. This would complete the ABCD correction and establish a critical higher low within the broader trend.
  • If resistance is reclaimed: A strong breakout above the $94,000–$95,000 resistance zone, supported by consistent volume, could invalidate the bearish setup and pave the way for continuation toward all-time highs.

Final Thoughts

Bitcoin is currently testing a major technical ceiling, and caution is warranted as the market determines its next direction. Whether the price breaks above resistance or faces rejection, the coming days will likely offer key insights into Bitcoin’s short- to medium-term trajectory.

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