Bitcoin Bulls Eyeing Deeper Retracement Before Next Move

Bitcoin bulls are eyeing a deeper retracement following recent gains. With the halving approaching, a possible "sell the event" decline could precede a bullish move. Support levels at $59.4k and $55.5k are crucial, as a drop below $50.5k may signal a bearish reversal. A move above $73.7k would indicate bullish continuation in BTC's market structure.

Will Bitcoin Bulls Wait for a Deeper Retracement?

Bitcoin [BTC] has experienced a retracement of its recent gains. With the halving approaching, a short-term "sell the event" decline may occur before bulls regain momentum.

Bullish Structure, but Support Levels Key

BTC's daily market structure remains bullish, but a drop below $50.5k would signal a bearish reversal. Conversely, a move above $73.7k would indicate bullish continuation. Support levels at $59.4k and $55.5k are crucial for maintaining the uptrend.

Momentum Waning, Liquidity Targets Identified

Momentum indicators suggest that buyers have lost their advantage. The OBV has approached a support level, indicating that buyers may struggle to sustain prices above $60k. Liquidation levels around $60.8k, $57.2k, and $55k present potential targets for bears.

Ethereum's Retest Rejected

Ethereum [ETH] has already tested its 78.6% retracement level. Despite a strong bullish reaction, the bulls faced rejection below $3600. The OBV and RSI indicate that the retracement may not be complete, with a potential drop to $3160 or lower.

Liquidity Pockets and On-Chain Metrics

A significant liquidity pocket at $3000 could be tested soon. On-chain metrics provide mixed signals. The MVRV ratio remains positive, indicating that holders are still in profit. However, the dormant circulation metric has marked recent local tops, which could indicate panic selling.

Solana's Upward Trajectory

Solana [SOL] has maintained its bullish momentum, despite the retracements in BTC and ETH. Bulls have yet to break below the 50% retracement level. The OBV and RSI support the bullish trend.

Support Levels and Indicator Analysis

Support levels at $106.9 and $128.8 could be retested if BTC falls below $60k. However, indicators suggest that a deep retracement is unlikely. The spot CVD and Open Interest indicate that bullish conviction is not strong yet, but selling pressure is also subdued.

Overall Market Outlook

Despite the recent retracements, all three markets maintain a long-term bullish bias. A Bitcoin move above $73k is expected, given the recent demand. The losses of the past two weeks may prove to be a temporary setback in the overall uptrend.