Bitcoin has fallen sharply after falling below the critical $91,700 level, according to the latest analysis by crypto research firm MakroVision. The digital asset is currently testing a key support zone, raising questions about how much further it can fall.
MakroVision notes that the strong impulsive move in Bitcoin’s price action could signal the presence of a C wave. A strong buying reaction at current levels is crucial to prevent further downside risk.
The sell-off has brought Bitcoin directly to the 0.382 Fibonacci retracement level of the $86,350 range. According to the analyst firm, this area represents a strong area that, along with the liquidity zone, could trigger a potential reversal. However, if this support fails to hold, Bitcoin could fall further towards the green trend lines and align with the 0.5 Fibonacci retracement level of the $79,200-$82,000 range.
Here are the critical areas according to the analytics company:
- $87,400-$89,800: A quick recovery above this zone could be a short-term bullish signal.
- $91,700: This former support level has now turned into resistance and will be a key level to reclaim for any upward momentum.
*This is not investment advice.
Continue Reading: What Are the Critical Levels for a Bullish Bounce Back in Bitcoin? Which Level Failure to Hold Could Lead to a Sudden Drop?
