Bitcoin Correction (BTC) is flashing early warnings of a potential pullback toward the $87,000–$88,000 region. Based on the most recent technical analysis (TA), this article will walk you through the major support zones, critical indicators, and smart trading approaches to consider during this period.
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Bitcoin’s Setup Hints at a Potential Pullback
1. Overview of Current Bitcoin Price Movement
Bitcoin recently struggled to move above the important $94,000–$96,000 resistance area, revealing early signs of distribution. This weakening momentum suggests the market may be shifting into a corrective phase.
MA20 Breakdown on the 4-Hour Chart
The 20-period moving average (MA20) on the 4-hour timeframe has been breached to the downside — a classic early warning of a possible correction. This moving average had previously served as dynamic support during the recent rally.
Volume Analysis Points to Distribution
Volume patterns further support the bearish outlook. A noticeable drop in volume during the latest price rise often precedes corrections, indicating that buyer strength is diminishing.
Volume divergence during Bitcoin’s recent rally, From News4Coin
2. Key Bitcoin Support Zones to Watch
Identifying and respecting support areas is essential for strategic trade planning and risk control.
90K Area – Immediate Support Level
The $90,000 mark aligns closely with the 50-period moving average (MA50) on the 4-hour chart. This zone is expected to attract initial buying interest if Bitcoin pulls back.
87K–88K Zone – Major Technical Barrier
A deeper retracement could bring Bitcoin to the 87,000–88,000 region, where the 100-period moving average (MA100) intersects with a key horizontal support zone. This technical confluence makes it a strong defense line against further declines.
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3. Suggested Trading Approaches
In times of heightened volatility, disciplined trading often outperforms speculative moves.
Avoid Chasing Longs Near the Highs
Opening new long positions at elevated levels without clear confirmation can be risky. It’s better to wait until Bitcoin decisively breaks above 96K before considering new long entries.
Be Patient at Key Support Zones
Patience is crucial. Set alerts at the 90K and 87–88K areas and look for strong bullish signals — such as a hammer candlestick formation on the daily chart — before acting. Waiting for confirmation can significantly boost your success rate.
4. Broader Indicators Supporting the Bearish Outlook
Declining stablecoin inflows signal weakening buying demand, from News4Coin
Beyond the charts, macro crypto metrics are also suggesting caution.
Stablecoin Exchange Inflows Declining
On-chain data shows a significant decrease in stablecoin inflows into exchanges, a warning that new buying liquidity is drying up.
Sentiment Indicators Cooling
The Fear & Greed Index is signaling a reduction in market enthusiasm. Historically, periods of extreme greed have often led to sharp corrections in Bitcoin’s price.
Shrinking Stablecoin Inflows Reflect Weaker Buying Momentum
5. Final Thoughts: Stick to the Technicals and Stay Nimble
Bitcoin is approaching a critical decision point. Adhering to time-tested technical analysis principles and practicing discipline offers the best odds for success. Although a pullback toward 87K–88K seems likely, staying flexible and letting price action dictate your next move is essential.
Always remember: “Patience is the trader’s greatest weapon.”
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. Trading cryptocurrencies involves significant risk and may not be suitable for all investors. Always conduct your own research and consult with a professional advisor before making any investment decisions.