Wall Street closes at a record for the first time since end of January
Upon evaluating Bitcoin’s price action across multiple timeframes, I anticipate that today’s reversal from the day’s low at $60,187, following a 16% weekly decline, signals potential continuation of this upward movement. Recent negative sentiment in the cryptocurrency market has been influenced by concurrent sell-offs in precious metals and equities.
Bitcoin was headed for a third straight week of losses and had reached near the edge of bearish territory, which could cause it to hesitate entering this zone, starting below the 200 DMA ($57,912) in the weekly chart.
In my last analysis, while Bitcoin was trading at $108,249, near the peak levels, while everyone was overly optimistic about the continuity of bullish sentiments, I tried to predict the maximum height the Bitcoin prices could test.
In that article, I explained that after completion of a “Cup and Handle”, Bitcoin could elevate only up to the height of the ‘Handle’, and that must be equal to the ‘Depth of the Cup’.
On October 6, 2025, Bitcoin experienced an advent of a selling spree soon it touched the defined height for the ‘Handle’ in “Cup & Handle” formation. Since then, this slide is still intact, but has thrown Bitcoin into the oversold zone.
Undoubtedly, cryptocurrency was battered by a broader exodus out of risky, speculative assets in recent weeks, with losses intensifying after Trump nominated Kevin Warsh as his pick for the next chairman of the Federal Reserve.
And, Warsh was viewed as a less dovish pick, specifically given that he has opposed the Fed’s asset buying programs. This trend could see the Fed maintain a learner balance sheet in the long-term – a scenario that is expected to tighten monetary policy and pressure speculative assets such as crypto.
I anticipate that if Bitcoin shed some gains here could find strong support from the significant support at the 200 DMA ($57,914), and in that case, the reversal could continue up to the immediate resistance at $72,035, where, after struggling, the next resistance is at $83524.
Disclaimer: Readers are advised to take any position in Bitcoin at their own risk, as this analysis is based only on observations.