Why The Bitcoin Price Crash Is Important If Wave 5 Corrects To $94,000

The recent Bitcoin price crash is not just another dip in the market, according to analysts; it could be one of the most critical phases for its long-term bullish structure in this ￰0￱ market expert Tara has emphasized that this ongoing retracement sets the foundation for Bitcoin’s next major ￰1￱ analysis points to a potential Wave 5 correction that could drive the BTC price as low as $94,000 before the next major bullish trend ￰2￱ Price Eyes Recovery After Wave 5 Retracement In a technical analysis shared on X social media, Tara disclosed that Bitcoin’s latest price correction “is probably one of the most important retraces it will have in a long time.” She views the decline as an essential process that prepares the leading cryptocurrency for a strong rebound in the ￰3￱ on her Elliott Wave analysis, there are only two waves left before the broader market shift ￰4￱ Reading: Analyst’s Full Market Breakdown Shows Why Bitcoin Price Is Headed For $120,000 The analyst notes that the primary reason the Bitcoin price crash is important is that it allows the Relative Strength Index (RSI) to recover, creating ideal conditions for a Bullish Divergence.

Subsequently, this divergence could establish a solid bottom for BTC, which is a critical signal for the start of a renewed ￰5￱ her chart, Tara identifies a key Fibonacci Retracement zone between $103,400 and $104,900 as the resistance range for its current ￰6￱ 0.382 Fib level is located near $103,478, where the Bitcoin price intersects with the Moving Average (MA), while the 0.5 Fib level aligns with $104,943. The analyst notes that this range could act as a crucial pivot zone before BTC resumes its correction in the final Wave 5 down to $94,000. Additionally, the chart shows that Bitcoin is currently retracing from a previous low near the 0.618 Fibonacci Extension around $103,755.79.

Trading volume has also declined by over 48% in the past 24 hours, while RSI remains weak at 33.96, signaling that the market is still ￰7￱ The Path To $94,000 Matters For The Next Bull Cycle In responding to questions from crypto community members under her X post, Tara clarified that Bitcoin could first rise to $104,000, representing a 0.97% increase from current levels above $103,000, before crashing 9.6% to $94,000. She expects a price bottom to occur quickly and soon, whereas it may take longer for Bitcoin to build solid support before reversing into a new bullish ￰8￱ Reading: Here’s What Happened The Last Time The Bitcoin Price Closed October In The Red Tara stated that the ongoing retracement could peak around the day of her analysis, but the bottom might take a few more days to ￰9￱ the anticipated “pain,” she reassured market watchers that the correction is necessary for Bitcoin’s next leg ￰10￱ also emphasized that the market may not feel bullish until mid-December ￰11￱ image from Pixabay, chart from ￰12￱