Technical structure on higher time frames shows a transition from trend expansion to consolidation after a sharp pullback from the $120,000–$125,000 zone. Bitcoin price found demand at the mid-$80,000s and then stabilized. Downside momentum slowed significantly as recent candles printed with lighter volume.
Bitcoin price is also the 200-day moving average. The latter remains positive. This maintains the current long-term uptrend but could be set back due to the fall of shorter-term averages above.
The zone support between $85,000 and $88,000 is essential for the premise of consolidation. This range could help create support levels for a relief rally. Support levels observed by analysts range from $95,000 to $100,000, in case there’s a revival.
On the other hand, in the case of a decisive breach of the level of support, the zone of deeper retracement could see the resumption of risk. This is expected to lead to the extension of the loss incurred by short-term holders of the cryptocurrency.
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