Bitcoin Hits Critical Support Is Another Dump Coming?
As I expected in the previous idea , Bitcoin has broken through its support lines and declined to the support zone($86,300-$85,14, reaching its full target in the process.
Currently, Bitcoin( BINANCE:BTCUSDT ) is moving near the support zone($86,300-$85,14, and we need to watch whether it will break through this support or begin to rebound.
Before diving into the analysis, its important to note that Bitcoin has a strong correlation with the S&P 500 inde SP:SPX ). Given that the S&P 500 is currently in a downward trend, its likely that Bitcoin will also experience further declines.
From an Elliott Wave perspective, it seems that Bitcoin is currently starting a new five-wave downward sequence following the break of its support lines, which could lead to even lower levels.
Looking at recent developments, one reason for Bitcoins decline is the selling pressure from long-term holders, which has created a quiet but significant downward pressure and challenged the support levels. Additionally, the state of the U.S. markets, with the S&P 500 index also trending down, contributes to the downward pressure on Bitcoin.
In conclusion, I expect that Bitcoin, upon entering the resistance zone($89,230-$87,72 and touching the resistance lines, will again face downward movement and aim for the support zone($86,300-$85,14. If it breaks that support zone, we could see it moving towards Cumulative Long Liquidation Leverage($85,300-$83,00.
Cumulative Short Liquidation Leverage: $89,000-$88,500
Cumulative Short Liquidation Leverage: $91,830-$90,000
Cumulative Short Liquidation Leverage: $98,400-$97,000
Note: If Bitcoin breaks below the $83,000 mark with strong momentum, we might expect it to reach even lower levels, potentially down to $80,000.
Do you think B