Key Takeaways
Bitcoin could face a 12% price correction to around $61,688 after a final push to the $70,100 liquidity level, according to a new technical analysis. The price of Bitcoin was trading at $69,250 as of 14:00 UTC, down 1.5% over the past 24 hours.
"We're observing a classic Elliott Wave pattern, specifically a corrective wave 4, which suggests a temporary peak before a significant downturn," said an analyst from CryptoCheckGroup in a report published Tuesday. "The $70.1K level represents a major liquidity pocket, and a rejection from this zone is the trigger for our bearish thesis."
The analysis identifies the current price action as the final leg of a corrective phase before the drop. Data from Coinglass shows open interest in Bitcoin futures remains elevated at over $30 billion, suggesting high leverage in the market. A sharp rejection from the $70,100 resistance could trigger a cascade of long liquidations, amplifying the downward move.
The predicted 12% drop would erase most of the gains made in the past month and could reset market sentiment ahead of the next major directional move. CryptoCheckGroup's report anticipates the downward leg to begin on the upcoming Thursday, putting traders on high alert for increased volatility around the identified resistance level.
The bearish forecast comes as Bitcoin has struggled to maintain momentum above the psychologically important $70,000 mark. After reaching an all-time high near $73,800 in March, the asset has been consolidating. The CryptoCheckGroup analysis posits that this consolidation is a distributive phase.
The broader cryptocurrency market has moved in tandem, with Ethereum, the second-largest cryptocurrency, also facing resistance near the $3,800 level. A significant correction in Bitcoin would likely pull down altcoin markets, which often exhibit higher volatility during major market shifts. Total crypto market capitalization stands at $2.55 trillion, with Bitcoin dominance at 54.2%.
This article is for informational purposes only and does not constitute investment advice.
