Bitcoin’s recent price action has raised questions about market direction following today’s sharpest decline since December 18th. The cryptocurrency fell 5.4%, interrupting a remarkable seven-day winning streak that had added $10,000 (11.55%) to its value.
Notably, today’s retracement captured exactly 61.8% of the recent advance-a key Fibonacci level often associated with healthy market consolidation rather than trend reversal. This technical pattern suggests Bitcoin may resume its upward trajectory before entering a more substantial correction phase.
For context, Bitcoin’s last major correction occurred in September, when prices plunged from $73,000 to $49,000-a 34% decline that followed August 24th’s flash crash, which had temporarily erased 50% of value. More recently, after touching a new record of $108,000, Bitcoin experienced a 15% pullback before finding its footing.
The $90,000 level has emerged as crucial support since November, repeatedly catching downside moves. Early 2025 saw Bitcoin mount an impressive recovery, posting seven consecutive daily gains and reclaiming the psychologically significant $100,000 mark for the first time since December 21st.
Current trading at $96,900 places Bitcoin below the $100,000 threshold following today’s pullback. While the market has shown resilience by bouncing from the 61.8% retracement level at $96,049. This matches the low seen on Friday January 3rd.
Ichimoku Cloud analysis continues to paint a compelling bullish picture for Bitcoin, with the cryptocurrency demonstrating remarkable technical resilience by maintaining its position above the cloud formations for an impressive 90-day stretch.
Today’s price action further validated the cloud’s importance as a technical reference point. Despite momentarily penetrating the cloud during intraday trading, Bitcoin showed characteristic resilience, with prices poised to close the session above this crucial technical threshold
The consistent respect for the cloud boundaries suggests that Bitcoin’s broader uptrend remains technically intact
Looking ahead, while a substantial correction appears likely within the next six months, today’s decline likely represents a temporary setback rather than the start of a major downtrend. The market could potentially reach $125,000-$135,000 before experiencing a more significant correction.
Traders should watch the critical $90,000 support level and the 50% retracement beneath that at $87,750, a breach would signal increased probability of an imminent severe decline. However, if prices maintain above $96,000, the path appears clear for Bitcoin to continue setting new records in the weeks ahead.
Originally published at https://thegoldforecast.com.
Decline in BTC start of correction or healthy pullback before continuing higher? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.