Bitcoin Price Volatility: Is a 12% Retrace to $92,000 Inevitable?
Bitcoin’s price has sharply fluctuated, recently dropping to nearly $98,400, then recovering to above $105,000. Analyst Doctor Profit sees a potential 12% retrace to $92,000, aligning with a CME gap and indicating bearish signals. He stresses caution, particularly around key levels, and notes the importance of the golden line for securing bullish momentum as Bitcoin seeks to advance towards new highs without revisiting $90,000.
Bitcoin’s market has faced significant ups and downs recently. Prices hit a low of around $98,400 before bouncing back above $105,000 just on Monday. This continuing volatility has traders on high alert, with many eyeing a potential retracement that could see Bitcoin retreat by as much as 12% to hit a key level of $92,000.
Notably, Doctor Profit, a technical analyst sharing insights on social media platform X, highlighted an important gap at the Chicago Mercantile Exchange (CME) sitting at $92,000. He suggests that the journey down to this point is likely inevitable. Closing this gap, he argues, could fuel anxiety within the market, inadvertently benefitting those who make markets.
Beyond the gap, Doctor Profit pointed out a critical liquidity zone in the vicinity of this $92,000 mark, making it a likely target for Bitcoin’s movements in the near future. This potential dip would represent a 12% pullback from current trading levels, warranting close observation from traders.
There are further indicators suggesting a bearish outlook for Bitcoin just now. The analyst noted signs such as the Moving Average Convergence Divergence (MACD) crossing—the first bearish signal—and the breakdown of the previously significant $104,000 barrier. He also flagged the loss of the “golden line”, a crucial marker resting near $103,000, which is essential for any recovery.
Caution is advised, especially around critical price points like $100,000 and the CME gap referenced earlier at $92,000. Doctor Profit worries that in a worst-case scenario, Bitcoin could plunge down to the range of $82,000 to $84,000, which would be quite troubling for investors.
The fate of Bitcoin now largely hinges on whether it can reclaim the golden line level, which serves as a significant retest following yesterday’s breakdown. For a move toward price stability and bullish momentum, Bitcoin must decisively settle above this marker.
Additionally, there’s a notable liquidity cluster around the $113,000 price point. Doctor Profit pointed out that this area could face a wave of liquidations for those who have shorted Bitcoin. If Bitcoin manages to solidify its position above the golden line, the beleaguering uncertainty that has kept many traders on edge could start to fade. That would change the sentiment from defensive to more optimistic.
In conclusion, while Doctor Profit had previously anticipated Bitcoin hitting $90,000 before making strides toward new all-time highs, he now speculates that the ongoing resolution of market turmoil could change that need. Despite geopolitical issues like the ongoing crisis between Israel and Iran, he seems to think Bitcoin may well be poised for an upward trend, potentially veering toward previous record highs without needing to revisit that $90,000 level.
At present, Bitcoin is trading at $105,560, marking a 3% increase within the past day. However, it still trails about 5.3% from its record peak of $111,800.
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