Bitcoin Tests Key Fibonacci Support as Analysts Warn of Drop to $76K - Is This the Dip Before the Rip?
Bitcoin's price action is putting a crucial technical level to the test, sparking debate across trading desks.
The Fibonacci Fret
That key Fibonacci retracement level everyone's been watching? It's under pressure. Analysts are now pointing to a potential slide toward the $76,000 mark if support fails to hold. It's a classic chartist showdown between bulls clinging to historical patterns and bears betting on a breakdown.
Market Mechanics in Motion
These moves aren't happening in a vacuum. They reflect the ongoing tug-of-war between institutional accumulation and short-term profit-taking. Liquidity pools around these major levels act like magnets, pulling price action one way or another as large players position their books. Forget the 'fundamentals' for a minute—this is pure market mechanics on display, the kind that makes traditional finance guys scoff while secretly checking the charts.
The Bigger Picture
A pullback to $76K might sound alarming on a headline, but for seasoned crypto veterans, it's just another potential entry zone in a long-term uptrend. Volatility isn't a bug; it's a feature. The real question isn't if support breaks, but how the market structure holds up during the test. After all, in crypto, a 20% dip is just a Tuesday—and sometimes the best setup for the next leg up. Just ask anyone who's ever sold a 'top' only to watch it become the floor six months later.
Bitcoin Dips Below $88K in Weekend Leverage Flush, Analyst Says
Over the weekend, Bitcoin briefly dipped below $88,000 during another round of leverage washouts before rebounding above $91,500.
Analyst “Bull Theory” described the MOVE as typical low-liquidity weekend manipulation aimed at flushing both longs and shorts.
The market now turns its attention to this week’s Federal Open Market Committee meeting, where a 0.25% rate cut is widely expected.
BREAKING: bitcoin dumped $2,000 from $89.7k to $87.7k and liquidated $171 million worth of longs.
But then it pumped $3,500 from $87.7k to $91.2k and liquidated $75 million worth of shorts.
All this happened in the last 4 hours.
This is another example of manipulation on the… pic.twitter.com/1JxZ3rSWmu
Still, crypto markets have cooled since the October cut, as Fed Chair Jerome Powell emphasized a data-dependent path rather than a predictable easing cycle.
Markus Thielen of 10x Research noted that traders expect a similar tone this week, cautious and potentially hawkish, keeping pressure on risk assets.
With ETF inflows softening and trading volumes thinning into December, Thielen said upside participation remains limited, while volatility compression leaves BTC more vulnerable to downside moves in the NEAR term.
“Bulls will point to the Treasury General Account rebuild, the end of Quantitative Tightening, and looming rate cuts as a liquidity windfall for Bitcoin,” Thielen wrote.
He added that hypothetical macro tailwinds are “irrelevant if the underlying message lacks conviction and the market structure fails to support a sustained move.”
Nick Ruck of LVRG Research said upcoming U.S. jobs data and inflation figures may prove just as influential.
If they reinforce expectations for continued easing, he believes renewed liquidity inflows could fuel a broader recovery across digital assets.
Bitcoin’s Rising “Liveliness” Metric Signals Hidden Bull-Market Strength
As reported, a key on-chain indicator known as “liveliness” is climbing again, even as Bitcoin’s price action remains subdued.
Analysts say the divergence suggests renewed underlying demand, with dormant coins moving at levels not seen in years, a sign that long-term holders may be re-entering the market.
The indicator’s steady rise points to a major rotation of capital beneath the surface despite cautious sentiment.
Liveliness measures the balance between coins being transacted and those being held, weighted by age. It tends to rise during bull markets as older coins move at higher prices, reflecting fresh inflows and greater conviction.
Last week, Bitfinex said the market is showing “seller exhaustion” following a period of heavy deleveraging and panic-driven exits by short-term holders.
“The combination of extreme deleveraging, capitulation among short-term holders, and early signs of seller exhaustion has created the conditions for a stabilisation phase and a relief bounce,” the firm wrote.
