Bitcoin Braces for Impact: Is a 4H FVG Retracement Looming for BTC?
Bitcoin's bull run hits a potential speed bump as technicals flash warning signs. The crypto king might be gearing up for a dive back to its last major 4-hour Fair Value Gap—because what's a rally without a little drama?
Market Pulse: The FVG Factor
Traders are eyeing that juicy 4H FVG like a shark circling chum. If BTC can't hold current levels, prepare for the usual chorus of 'I told you so' from permabears—and maybe a fire sale on Lambo dreams.
Between the Lines
This isn't your grandma's support test. A confirmed breakdown here could trigger algorithmic carnage faster than a Wall Street quant can say 'risk-off.' But let's be real—since when does crypto follow the script?
Bottom Line: Buckle Up
Whether this is a healthy pullback or the start of something uglier depends on who's holding the leverage. One thing's certain: the 'buy the dip' crowd will be out in force—assuming their margin calls don't hit first.
V-Shaped Pattern Shows Bears In Control
Crypto analyst Youriverse explained the Bitcoin situation and why there could be a crash coming soon. First thing he pointed to was the fact that the cryptocurrency had made a V-shaped pattern after hitting its all-time high above $123,000, and this formation is usually bearish. This is because it shows a shift toward sellers being in control as profit-taking becomes more pronounced. This is only the start as more bearish developments are now in play.
Two Fair Value Gaps (FVGs) were created on the 4-Hour chart, and one has already been filled. The first happened with the retest at $119,000 and $120,000, which eventually led to a rejection. Therefore, this leaves one more gap to be filled, and it’s the 4H FVG at its previous highs. This gives credence to the analysis and suggests that the other gaps created could be filled as well.
The analyst puts the second 4H FVG just above $111,000, which coincides with the previous high turned resistance. He believes that this is what makes the level a “magnet,” especially as investors begin to take profit. Strong selling pressure could provide the added momentum needed for the price to fall toward the $111,000 level.
Another major problem right now is that the bitcoin price has formed a CME gap over the weekend, and with the retracement in price, the CME gap is looking filled at around the $114,000-$116,000 level. There has already been an attempt earlier in the week. But the $114,000 was not touched. If this CME gap is filled, then it makes it even more likely that the second FVG will be filled at $111,000.
Bitcoin Price Still Shows Bullishness
Although the bearishness of the gaps still looms heavy over the Bitcoin price, there is still bullishness left for the cryptocurrency. One example of this is the rising volume alongside the increase in price, suggesting that the volume is being dominated by buyers at this level. Coinglass data shows the daily volume has averaged over $100 billion this week.
The bitcoin Fear & Greed Index is currently still in Greed, and is yet to enter the Extreme Greed territory, which is usually when a top is marked. Open interest is also sitting close to all-time high levels, which could lead to a price push before a correction.
