Bitcoin has skyrocketed highest price level In almost three months, he was able to recover $79,000 due to new institutional appetite. However, Technical analysis shows this This rally is not a cause for celebration as it has created an imperfection. According to technical analyst TARA, a key macro Fibonacci resistance level is now directly above it and Bitcoin could see a strong reaction at this level.
Bitcoin is approaching macro resistance around $80,000
Bitcoin climbed above $79,000 on April 22, hitting an 11-week high following President Trump’s extension of the US-Iran ceasefire. This development eliminated immediate fears of a resurgence of conflict near the Strait of Hormuz, and this was enough to prompt influxes in various investment markets.
The Latest analysis from Crypto analyst TARA is based on Bitcoin’s interaction with the macro Fibonacci resistance of 0.382, which lies between around $79,000 and $81,000. BTC has been rising in a structured sequence, forming higher highs and higher lows in this resistance zone on the daily candlestick price chart. According to the analyst, BTC’s recent rally is a final approach to a wall it has hit before and which she believes it will hit again.
Their chart shows Bitcoin completing an apparent ABC corrective wave structure, with price marking the top of the (C) wave around the 0.382 Fib level. At the time of writing, Bitcoin is trading at $77,655. The forecast says it will reject somewhere between $79,000 and $81,000 before a sharp decline to another macro Fib level.
Bitcoin price chart. Source: @PrecisionTrade3 On X
Upcoming BTC price crash of 20%
TARA pointed out another technical warning found in a price momentum indicator. The RSI on the medium time frame charts is already showing a bearish divergence, meaning momentum is decreasing as the price rises. At the time of analysis, the indicator was at 65.47 and the signal line was at 61.02.
Based on the current setup, TARA expects this divergence to persist until the final push of resistance. If the RSI continues to flatten or decline as Bitcoin tests the $79,000-$81,000 range, it would reinforce the notion that the move is running out of momentum. A similar analysis from Crypto analyst Michael van de Poppe also admitted that the $79,000 level was filled with sell orders, which led to a slight decline in BTC price.
The downside target is not modest if TARA’s analysis is correct, as the prediction is that Bitcoin will at least return to the macro 0.5 Fibonacci retracement, currently around $64,500. That would mean a drop of about 18% to 20% from the resistance zone. If the larger corrective structure is fully implemented, then Bitcoin could see a complete decline Move towards support levels around $52,000.
Featured image created with Dall.E, chart from Tradingview.com
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