Bitcoin has displayed a clear market cycle of impulsive and corrective movements, a pattern distinctly visible in the current trading season. The recent impulse phase, characterized by aggressive, one-sided price movements, emerged prominently after a breakout from a long-term bearish channel on the daily chart. This breakout, which occurred in October, fueled a robust rally, propelling Bitcoin’s price to an impressive peak near $100,000.

Correction Phase and Price Action

Following the impulsive rally, a corrective phase unfolded, marked by reduced momentum in the opposite direction. Interestingly, the market initially corrected upwards, reaching a peak of $108,364.0, before a sharp decline ensued. This crash breached the lower boundary of the parallel channel that previously supported the bullish ascent.

Currently, Bitcoin has retested a critical support level at $93,483.0, triggering a price rebound. If this momentum persists, the market could return to an impulsive phase, potentially driving higher prices.

BTC Key Levels

• Demand Levels: $93,483.0, $73,754.0, $60,268.0
• Supply Levels: $108,364.0, $120,000.0, $130,000.0

Technical Indicators Overview

Bollinger Bands

Bitcoin’s persistent pressure against the resistance band of the Bollinger Bands signalled market exhaustion, confirming an overbought condition. The subsequent correction brought prices back within range, with the Bollinger Bands now acting as supply and support levels to aid the recovery.

Stochastic Oscillator

The Stochastic indicator confirmed an oversold condition during the $93,483.0 support zone pullback. This alignment with a critical demand level catalyzed the current price recovery, underscoring the zone’s significance as a launchpad for potential bullish momentum.

A sustained rally above this support could signal a return to an impulsive phase, driving Bitcoin towards higher supply levels and reaffirming its bullish outlook.

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