After BTC Spot ETF was approved, BTC reversed at Fibo Retracement 0.786 ~ $49K. This price adjustment behavior has been repeated many times in previous cycles and I do not find this strange at all. I think that the temporary recovery ended after the period of BTC price increasing very quickly, BTC needs to rest before going into a really strong growth phase in 2024-2025.
Currently, BTC price has retested $39K, down about 20% compared to the peak price. Many investors in the crypto community are worried but I think this is also a good correction for BTC and the entire crypto market. If BTC price continues to increase very strongly, the chart will form unsustainable patterns and we will see the bubble burst event coming very quickly. Conversely, when the BTC price corrects, greedy heads are cooled and the growth trend is reinforced by the support zones below. In addition, this fluctuation also causes weak hands to sell and exit positions, Market Maker can collect more tokens, ready to pump to create an impressive and powerful bullrun!
Let's try to predict the support price zone for BTC.
Using Fibo Retracement, BTC price has currently decreased from Fibo 0.786 to Fibo 0.618, however this zone does not have any support yet, so I think BTC will continue to decrease to Fibo 0.5 ~ $32K. This was a strong resistance zone in Q2 2023. Once broken, it could become a reliable support zone for BTC's price increase.
In case the market has a black swan event, BTC may drop to Fibo 0.236 ~ $22K. However, since the BTC halving is only about 3 months away, I don't think the market has enough time to make such a big move, so I won't pay much attention to this possibility.
Do you think the ongoing correction is good for BTC's long-term bullish trend? In your opinion, to which price zone will BTC adjust before continuing to increase? What methods do you use to identify and predict it?