Bitcoin Price Risks Break Down To $92,000 As It Enters Accumulation Phase
The Bitcoin price has turned bearish after hitting a new all-time high above $111,000 back in May. This turn in the tide was expected as the rally put Bitcoin holders in massive profit, showing a risk of profit-taking th...
Archive context
Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
The Bitcoin price has turned bearish after hitting a new all-time high above $111,000 back in May. This turn in the tide was expected as the rally put Bitcoin holders in massive profit, showing a risk of profit-taking that could tank the price. So far, the price is already down by 6% % from its all-time high and trending at $104,000 at the time of this writing. But as bears take control, it is likely that the decline is far from over, and the cryptocurrency could fall below 6-figures again.
The Pathology Of The Bitcoin All-Time HighA pseudonymous analyst who goes by Youriverse on the TradingView website has explained the movement of the Bitcoin price over the past few weeks and why the market has been moving the way it has. As he explains, Bitcoin has been exhibiting what is known as a textbook accumulation since the uptrend began in the second week of May. This accumulation was part of the reason why the cryptocurrency rallied to new all-time highs.
At this time, the crypto analyst revealed that the Bitcoin price had seen more compression as it reached higher lows and resistance remained relatively flat. Additionally, the selling pressure that had rocked the Bitcoin price through the last few months due to the Donald Trump tariff wars had also waned at this time, putting the buyers in control of the price. The result of this is a possible ‘Power of 3’, which the analyst explains includes Accumulation, Manipulation, and Distribution.
These three together were part of the reason that the Bitcoin price started moving upward. The resultant rally saw an initial push toward previous all-time high levels, and then subsequently, there was a push to a new all-time high above $111,000. However, the price action waned before Bitcoin could break $112,000.
As a result of the dwindling upward pressure, a reversal was inevitable, and the Bitcoin price suffered a decline toward previous support levels at $106,000. However, this support has not held as it has since broken below this level, signaling “a notable shift in market structure.”
Why A Decline To $92,000 Is PossibleThe analyst explained that the ‘Power of 3’ could be playing out right now, and this could see the price go further downward as larger investors dump on the lesser informed retail crowd. Furthermore, as the Bitcoin price continues to trend below the $106,000 support for longer, it increases the likelihood that the price could fall further. “The rejection above the ATH and the subsequent breakdown below $106K has introduced significant overhead supply, which may act as resistance in the near term,” the analyst said.
Given this, he expects that the Bitcoin price could end up falling back to $100,000 and even reach as low as the mid-$90,000s. But if this happens, rather than triggering a bearish trend, it could mean an opportunity to buy, as this area could attract more liquidity and serve as a bounce-off point for another rally.
“This potential pullback should not be viewed solely as a sign of weakness,” the analyst stated. “In many bull cycles, such corrections and shakeouts serve to flush out over-leveraged positions and reset sentiment, ultimately laying the groundwork for renewed upward momentum.”
Why this matters
This bitcoin story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
Read on NewsBTCRelated market context
Ethereum Price Prediction: Is the $60,000 ETH Forecast Realistic?
Ethereum trades at $2,390, down 2% over 24 hours, with the price still confined to a broad range. A $60,000 Ethereum price predict...
Bitcoin Price Prediction: Strategy Slapped the Buy Button Amid MSCI Delisting Rumours
Strategy added Bitcoin even as an MSCI delisting review put its funding model under scrutiny. BTC traded at $81,500 after recoveri...
BlackRock Files for Bitcoin ETF That Trades Capped Gains for a 10% Loss Floor
BlackRock filed on Monday to register the iShares Bitcoin Managed Protection ETF, a fund built to give up part of bitcoin’s gains...
Switzerland’s FINMA Lets Retail Investors Into a Bitcoin-Only Fund for the First Time
Switzerland’s financial markets regulator has approved the country’s first exchange-traded fund that holds bitcoin directly, and i...
DeFi tokens lead crypto higher as Nasdaq futures rebound and China GDP beats estimates
Bitcoin extends its bounce above $82,000 as China GDP beats estimates and Nasdaq futures rebound, with DeFi tokens leading altcoin...
Ethereum options show downside skew as puts trade higher than calls
Ethereum's downside skew in options suggests increased market caution, potentially impacting investor sentiment and future price s...