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As the pullback within the rising channel intensifies, will Bitcoin drop below $68,000 or rally toward $78,000?
The crypto market has declined by 5.68% today, crashing back to $2.28 trillion from the $2.418 trillion peak on Tuesday. Amid the crashing market, Bitcoin has revisited the $69,300 level.
Crashing from the 7-day high of $73,600, the BTC price has dropped by 5.84%. With a correction rally at play, will the biggest crypto crash under the $68k mark? Find out now!
Bitcoin Tests Crucial 4-hour Support
On the 4-hour chart, the recent pullback in Bitcoin is testing a crucial support trendline, which forms a rising channel pattern.
The bearish correction began with a double-top pattern near $72,700. After facing rejection above the $73,000 mark, the neckline of the bearish pattern was established at $71,600.
Following this double-top breakout, the BTC price has returned to the support trendline near the 38.20% trend-based Fibonacci retracement level within the rising channel. Currently, it is finding support, as indicated by a lower price rejection, hinting at a potential bullish comeback.
However, Bitcoin must surpass the 50% Fibonacci level at $70,310 for a sustained recovery. A successful bullish recovery could see Bitcoin challenge the peak of the double top at $72,700. Conversely, a drop below the support trendline could trigger a significant sell-off in Bitcoin.
The next crucial support levels to watch in case of a decline are $67,500 and the $65,000 mark.
Analyst Ali Martinez Targets $78k
Despite the sudden crash, widely followed crypto analyst Ali Martinez retweeted his recent analysis, which predicted a minor pullback to $69,000. Highlighting the number 69 in his recent tweet, Martinez reiterated an analysis that revealed if Bitcoin stood above $65,000, a price jump to $72,000 was possible.
However, he also highlighted that a pullback to $69,000 is possible before starting a bullish trend to $78,000. As the first three variables of Martinez’s prediction stand true, is the next potential target for Bitcoin standing at the $78,000 mark?
Well, the trend-based Fibonacci levels in the 4-hour chart predict the next all-time high near $75,620. Meanwhile, an extended rally could target $82,183, or the 161.80% Fibonacci level.