Oh Dear! Is Bitcoin About To Tumble? 📉

by

Markets

A Most Pertinent Question:

  • The price of BTC doth linger near the crucial support of $107,000 – $110,000. A precarious position, indeed!
  • Should this support falter, a decline rivaling that of March and April past may well ensue. One shudders to think!

By Mr. Omkar Godbole, a Gentleman versed in the intricacies of CoinDesk analysis and Market Technique.

The recent recovery of Bitcoin’s price, following Friday’s unfortunate tumble, has been, if one may be so bold, rather lackluster. It leaves the price dangerously close to a support zone of some consequence. The outcome of this present situation promises, or threatens, to dictate much movement in the coming days. 😒

BTC did rally, briefly, to $116,000 after Friday’s most regrettable fall, when prices descended to near $105,000 on several exchanges. However, as was anticipated by those with a discerning eye, this recovery proved fleeting, with prices retreating to linger around $110,000, accompanied by signals most bearish from the momentum indicators.

Upon examination of the daily candlestick chart, one observes that the range of $107,000 to $110,000 forms a support zone of vital importance. It is marked by the highs of December to January last, and the lows of September. The convergence of these points suggests a struggle for dominance ‘twixt bulls and bears, making this a field of battle most pivotal. Moreover, the 200-day simple moving average stands at approximately $107,500. Quite a coincidence, wouldn’t you agree?

This begs the question: what consequences shall befall us should this $107,000-$110,000 support prove insufficient? A breakdown would signify the sellers’ triumph, leaving Bitcoin exposed to a most substantial decline. 😱

The first line of defense, should it come to that, would be $98,330 – the low recorded on June 22nd. Should this also fail, attention would turn to the lower boundary of the ascending channel, presently situated around $82,000. A sobering thought!

Portents of a Possible Sell-Off

Recent price movements within a bullish channel – delineated by connecting the higher lows from October 2023 and August 2024 with a parallel trendline through the high in March 2024 – indicate a condition of overbought sentiment and the potential for a considerable pullback. It appears some have been rather *too* enthusiastic!

Bitcoin’s trend since 2023 has been, for the most part, steady and sustainable, contained as it is within a parallel channel sloping approximately 45 degrees. A most respectable angle, one might add.

Of late, Bitcoin’s price has repeatedly exceeded the upper limit of this aforementioned channel, signaling, perhaps, a degree of over-exuberance. These forays have been short-lived, however, with prices quickly retreating, suggesting buyer fatigue. One suspects a surfeit of optimism!

Thus, a more significant decline cannot be entirely dismissed. Observe how prices repeatedly failed to establish a firm foothold above the upper limit in December and January. Such repeated rejection eventually led to a sharp descent, with prices dropping to around $75,000. A cautionary tale, indeed!

That being said, prudent traders should observe whether a rebound occurs from the crucial $107,000-$110,000 support zone. A robust recovery, coupled with a disavowal of lower highs through a move above $116,000, might yet set BTC upon a path towards challenging its record heights. One can only hope! 🙏

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2025-10-16 09:28