Cryptocurrency analytics firm Alphractal has issued a significant warning regarding Bitcoin’s price action, saying that BTC needs to hold onto a position above $84,000 to avoid a more aggressive correction.
According to Alphractal, Bitcoin is currently sitting at a key support level within the CVDD (Cumulative Value Days Destroyed) Channel, a model designed to dynamically analyze support and resistance levels. The specific level in question is seen as CVDD×2.618, a Fibonacci factor that places critical support at $84,640.
Alphractal explains that this pattern has historically been quite effective in identifying Bitcoin price bottoms across multiple market cycles. Once a key level is broken within the CVDD Channel, the price typically heads toward the next support or resistance zone.
If Bitcoin consolidates above $84,000, the firm suggests that it could form a local bottom before making a fresh move toward all-time highs. However, failure to maintain this level for several days could trigger a more significant decline.
In the event of a breakout, Alphractal identifies two key downside targets:
- $64,700 is a level that coincides with Bitcoin’s all-time high in April 2021.
- $60,000 could act as another major support zone.
If Bitcoin moves toward these lows, there could be a strong bearish sentiment in the market. However, the firm notes that a similar correction occurred between May and July 2021, but Bitcoin eventually recovered and reached new highs later that year.
*This is not investment advice.