SPX6900’s Dead Cat Bounce? $1.42 Resistance Threatens Bull Dreams

Markets hold their breath as SPX6900 teeters on the edge.

Key Level to Watch: The $1.42 price point emerges as a make-or-break zone—fail here, and the bulls get served another reality check.

Technical Breakdown: What looks like a bounce could just be the market's cruel joke before another leg down. Classic bear trap or genuine reversal? Charts whisper caution.

Wall Street’s Take: Analysts scramble to justify their earlier optimism—some things never change.

Bottom Line: In crypto, hope isn’t a strategy. Either SPX6900 punches through $1.42 or confirms the bears are back in charge.

Key technical points

• Bearish Market Structure: Lower high and lower low now in place after trend break.
• Critical Resistance at $1.42: Point of control, 0.618 Fibonacci, and high time frame level align.
• Full Auction Rotation Risk: Value area low is the next key downside target.

The loss of the higher low structure marked a major technical shift for SPX6900. For weeks, price action had maintained a clear uptrend, printing consecutive higher lows en route to an all-time high. But the recent drop broke this sequence, forming a new low and shifting the trend into bearish territory.

The current bounce has pushed price back into the $1.42 resistance zone, a level loaded with technical significance. Not only does this mark a high time-frame resistance level, but it also aligns with the point of control of the current trading range and the 0.618 Fibonacci retracement from the recent decline. Together, these FORM a strong confluence that price must reclaim to even begin rebuilding bullish momentum.

Without a clean break above this area, the current price action is best interpreted as a bearish retest, a common technical reaction after a market structure breakdown. This scenario increases the likelihood of a continuation MOVE to the downside, with the value area low acting as the next key target.

If this auction rotation completes, it WOULD confirm the transition from an uptrend to a developing downtrend, with lower highs and lower lows defining the new structure.

Adding to this, there is significant inefficiency and untested liquidity below the current price. These areas often act as magnets, drawing price lower before any sustained reversal can occur. That increases the probability of a continued move downward unless bulls can defend critical levels on any retest.

What to expect in the coming price action

SPX6900 is trading at a make-or-break resistance zone. If bulls reclaim $1.42 and flip it into support, it could stabilize the trend.

However, failure to break above will likely confirm a bearish retest and trigger a move toward the value area low. Immediate support sits at $0.97 and must hold to prevent further downside acceleration.