Bitcoin has entered a corrective phase after a notable rise that began at the end of December. As the cryptocurrency moves lower in intraday trading, the focus shifts to whether essential support levels can withstand this pullback. This decline follows a robust ascent that met expectations for a temporary rebound before a necessary pause.
The current phase appears to be a short-term correction, which was anticipated given the rapid increase observed earlier this month. So far, the decline has been orderly, suggesting a consolidation rather than a panic sell-off. Prices are now positioned near a crucial support zone between $90,400 and $90,800. A significant breach below this range could heighten the risk of a deeper retracement back towards late-December lows. For the time being, Bitcoin remains above these critical levels, thereby preserving the overall recovery trend.
It”s important to note that minor fluctuations below specific technical thresholds are generally acceptable within the context of a standard pullback. The current market environment may see Bitcoin trading sideways for the next few days as traders seek direction. Historical patterns indicate that similar pauses have occurred during previous rallies, allowing momentum to reset before further upward movement.
During this consolidation phase, traders should be prepared for potential choppy price action. On the upside, a decisive move above the recent weekly high of $94,850 would suggest the end of the current pullback. In that scenario, Bitcoin could aim for the $97,000 to $98,000 range. Until that threshold is surpassed, price movements are likely to remain sensitive to the established support levels, with market participants closely monitoring for indications that a short-term low has been reached.
