- Bitcoin’s RSI remains above oversold levels, signaling potential for further downside in the ongoing correction.
- The Fear and Greed Index is stuck at neutral (50/100), leaving room for increased fear to drive prices lower.
- Analysts pinpoint $105K as a critical BTC support; a break could trigger sweeps of recent lows, impacting altcoins like XRP.
In the volatile world of cryptocurrency, Bitcoin (BTC) is navigating a significant correction following its recent surge past $130,000.
As of today, BTC trades around $108,500, down over 2% in the last 24 hours, according to data from CoinMarketCap and TradingView. Prominent analysts More Crypto Online and CrediBULL Crypto have shared detailed insights on X (formerly Twitter), painting a picture of continued downside pressure but with defined support zones that could signal a reversal.
More Crypto Online, a respected Elliott Wave theorist with over 300,000 YouTube subscribers, posted a daily BTC/USD chart illustrating the correction as part of wave (4) in a larger bullish impulse. The chart highlights a support zone between $101,569 (50% Fibonacci retracement) and $112,954 (23.6% retracement), with intermediate levels at $108,502 (38.2%) and a potential “magic (3) top?” near $132,000.
The analyst notes that the Relative Strength Index (RSI) is still above oversold territory, currently hovering around 50, indicating “more room to the downside.” Complementing this, a snapshot of the Bitcoin Fear and Greed Index shows it frozen at neutral (50/100), far from the extreme fear levels (below 20) that often mark bottoms. “This correction continues to unfold,” the analyst stated, emphasizing that earlier warnings about sentiment leaving space for further declines are holding true.
Echoing this cautious outlook, CrediBULL Crypto responded to queries about altcoin implications, focusing on BTC’s pivotal $105,000 level. In a chart depicting XRP/BTC, he outlined scenarios where a BTC break below $105K could lead to a “deviation/fakeout” sweep of lows, potentially dragging XRP lower by another 3% against BTC. However, he stresses that downside for alt/BTC pairs remains “relatively limited,” suggesting a reversal if BTC holds above this threshold. “If BTC reverses before 105k then we probs avoid sweeping those lows,” he explained, advising traders to watch for bounces over the weekend.
This convergence of technical and sentiment analysis underscores a market in consolidation mode. While macroeconomic factors like firm inflation data contribute to the dip, as noted in recent Yahoo Finance reports, the absence of extreme fear suggests the correction isn’t exhausted yet. Traders are advised to monitor RSI divergence and Fibonacci supports closely. For bulls, a hold above $105K could reignite upward momentum toward new highs; bears, however, see opportunities in the $101K-$108K range. As always, in crypto, volatility reigns position accordingly.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
