Market analysts have been talking a lot about Bitcoin’s surge to new highs, lately though, some predict a possible pullback. Two top analysts, Captain Faibik and Crypto Patel, note that even if the trend is still strong, traders may be able to reposition themselves incase of a pullback.
What you'll learn 👉
Bitcoin’s Bearish Divergence Signals Weakening Momentum
Captain Faibik has identified a bearish divergence on Bitcoin’s daily chart.
The divergence occurs when the price makes higher highs, but the RSI registers lower highs, a sign that upward momentum may be losing steam. The RSI, now at 63.47, has broken a key support level, underscoring this trend.
The analyst predicts an 8-10% correction, which would bring Bitcoin’s price to the $94,000 level. This zone corresponds with prior consolidation levels and is viewed as a strong support area.
Faibik describes this potential dip as a “healthy reset,” suggesting that it could pave the way for the next leg of Bitcoin’s rally.
BTC Analysis Points to Possible Retracement
In another perspective, Crypto Patel’s Elliott Wave analysis highlights the formation of an Expanding Diagonal (ED) in Bitcoin’s Wave 3. This pattern often signals a looming correction.
Patel notes that the shallow nature of Wave 2 suggests caution for traders entering long positions at current levels. Moreover, Patel outlines a scalp short setup with an entry range between $106,000 and $108,000.
His price targets include $90,048 (0.382 Fibonacci) and $85,063 (0.5 Fibonacci), with a stop-loss set at a four-hour close above the recent all-time high. While bullish momentum remains, the analyst advises tight risk management and patience for clearer correction signals before committing to long trades.
Read also: Why Ripple (XRP) Price Could Reach $10 This Bull Run
Key Support and Resistance Levels in Focus
Both analysts emphasize the importance of watching support and resistance levels. Captain Faibik identifies $94,000 as a crucial support zone, with Crypto Patel highlighting Fibonacci retracement levels as potential markers during a pullback.
Despite the potential of a short-term decline, both analysts maintain a long-term bullish outlook for Bitcoin. They see this correction as an opportunity to accumulate and be set to capitalize on future gains.
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