Bitcoin Roadmap: Is a Major Correction the Next Stop?

As I expected from the previous analysis, Bitcoin did start to drop and hit its targets.

Now, with the news that the U.S. might impose a 100% tariff on China, we saw Bitcoin sharply sell off last night. Actually, as I mentioned in my previous ideas, the rally from about $109,000 to around $126,199(ATH) (which was a new all-time high for Bitcoin) had relatively low volume. That was a sign that a correction might be on the way, and last night’s news just acted as a trigger to speed it up.

In fact, what took Bitcoin 10 days to climb was reversed in about 4 days, showing how strong the sellers are right now.

Educational tip: You can use volume candles on TradingView to see which candles had higher volume—the thicker the candle, the more significant the move.

Now, the big question: will Bitcoin keep dropping or bounce back?

Right now, it’s sitting near a cluster of Support lines and close to the daily 200_SMA(Daily) and the 50_SMA(Weekly), as well as a Heavy Support zone($111,980-$105,820). Last night’s drop was basically the first test of these supports.

Since it’s the weekend and volumes are usually lower, we don’t expect a huge downward move in the next 48 hours.

Bitcoin might do a pullback to the broken Resistance zone($114,820-$113,180) and then continue its drop.

According to Elliott Wave analysis, Bitcoin seems to be completing a microwave 4 of the main wave 3.

I expect that after Bitcoin completes, we might see it continue downward and fill the CME Gap($111,355-$109,915) early in the next week.

So, do you think the major correction for Bitcoin has started or not? Let me know what you think!

Note: In case the Support lines break, there’s also a chance that we might see a Death Cross (where the 50-day moving average crosses below the 200-day moving average), which could signal further bearish momentum.

Note: Around the $108,000 level, we have huge buy orders stacked up, which might act as a significant support zone.

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Bitcoin Analysis (BTCUSDT), 4-hour time frame.

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