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Bitcoin has corrected from its all-time high near $123,000, retracing into a key support zone marked by strong technical confluence. This area now holds the potential to act as a launchpad for a renewed move toward the highs, if it holds.
After reaching a fresh all-time high around $123,000, Bitcoin (BTC) has entered a corrective phase, typical after extended bullish rallies. The pullback, however, appears to be technically healthy and has now brought price into a critical support zone. With multiple technical indicators aligning in this region, bulls will be watching closely to see if this correction transitions into a new leg higher within the current trading range.
Key technical points
- Support Zone Confluence: Bitcoin is testing a region combining the value area low, VWAP, and 0.618 Fibonacci retracement.
- Market Auction Complete: Loss of value area high followed by a test of value area low confirms full market rotation.
- Range Support at $115,200: This is the key high time frame support to maintain bullish structure and keep the range intact.
BTCUSDT (1H) Chart, Source: TradingView
Bitcoin’s recent correction has brought price action back down into a critical technical support area after posting an all-time high around $123,000. This pullback aligns with standard market behavior following such a strong rally, but more importantly, the correction has reached a zone with strong technical overlap.
The support region around $115,200 includes the value area low, anchored VWAP support, and the 0.618 Fibonacci retracement from the previous impulse, all converging to form a potential bounce zone. This convergence increases the probability that the current dip could be a retracement rather than the beginning of a deeper reversal.
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Additionally, the current correction has completed what’s known as a full market auction rotation. After losing the value area high, price has cycled through the range and tested the value area low, a typical pattern in sideways or range-bound markets. This structural behavior suggests Bitcoin is still trading within a high time frame consolidation, rather than entering a full-blown downtrend.
As long as price holds above the range low near $115,200, the high time frame range remains intact. This opens the door for a possible rotation back toward the $123,000 resistance. Should bulls reclaim that level, a break into price discovery and a new all-time high becomes highly probable.
What to expect in the coming price action
Bitcoin must continue to hold above $115,200 to maintain the current range structure. If this support holds, a rotation back toward the $123,000 level is likely. A breakout above that resistance could trigger a fresh all-time high. However, if the current support zone fails, it would break the range and potentially lead to deeper downside exploration.
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