The Bitcoin market has been marked by notable volatility recently, with prices fluctuating significantly, dropping close to the $98,400 level before rebounding above $105,000 on Monday.
Potential 12% Retrace To $92,000
Technical analyst Doctor Profit recently shared key notes on the social media platform X (formerly Twitter), indicating that a substantial Chicago Mercantile Exchange (CME) gap exists at $92,000.
The analyst predicts that this level will likely be eventually reached, suggesting that closing this gap could create additional fear in the market, which often plays into the hands of market makers.
Doctor Profit also highlighted in his analysis the presence of significant liquidity in that area, making it a probable target for Bitcoin in the near term. This could potentially mean a 12% retrace of BTC’s price.
Doctor Profit also pointed to several technical indicators that suggest a bearish trend for Bitcoin. He highlighted the Moving average convergence/divergence (MACD) crossing on the daily chart and the breakdown of the critical $104,000 level.
Additionally, the analyst mentioned the temporary loss of what he calls the “golden line,” which is currently situated around $103,000 for BTC, another key level to watch in order to accomplish further recoveries.
Doctor Profit warned that caution is necessary, especially near pivotal levels like $100,000 and the CME gap at $92,000. He even posited that a worst-case scenario could see Bitcoin correcting all the way down to the $82,000–$84,000 range.
Bitcoin Fate Hangs On Golden Line
Doctor Profit further elaborated that the situation hinges on the golden line, which serves as a critical retest to confirm the breakdown that occurred yesterday. For Bitcoin to secure a bullish continuation, it needs to close above this level.
Moreover, he identified a significant liquidity cluster around the $113,000 mark, noting that this area is rife with short liquidations. Should Bitcoin consolidate above the golden line, the uncertainty that has plagued traders could dissipate, allowing for a shift from protective strategies back to a more bullish outlook.
In his analysis, Doctor Profit concluded by stating that while he initially expected Bitcoin to reach $90,000 before any new all-time highs (ATH), the resolution of current market uncertainty indicates that this may no longer be necessary.
With the war between Israel and Iran, along with the volatility seemingly over, he believes Bitcoin can accelerate toward new all-time highs without the need to revisit the $90,000 mark.
When writing, BTC trades at $105,560, recording a 3% price surge in the 24-hour time frame. At this level, the market’s leading cryptocurrency trails 5.3% below its record high of $111,800.
Featured image from DALL-E, chart from TradingView.com
