Bitcoin (BTC) Price Faced a Massive Rejection After Marking a New ATH, Which Suggests the Beginning of a New Corrective Phase

Bitcoin (BTC) price faced a massive rejection after marking a new ATH, which suggests the beginning of a new corrective phase. Meanwhile, the Bitcoin accumulation across all categories of wallets

Bitcoin price faced a massive rejection after marking a new ATH, which suggests the beginning of a new corrective phase.

The BTC price dropped below $107K while Ethereum and the other altcoins also witnessed a similar pullback. The ongoing crypto crash occurred at times when the stock market has also been facing a sell-off.

The Bitcoin price recovered despite the Moody’s shockwaves in the financial market by downgrading the US credit rating. However, the BTC price faced a setback as the apex coin dropped below the critical support at $107K.

The price action analysis shows that the Bitcoin price faced a notable pullback after a failed attempt to sustain itself above the gained levels. The BTC price dropped below $107K while Ethereum and the other altcoins also witnessed a similar pullback. The crypto price pullback occurred at times when the stock market has also been facing a sell-off.

The crypto market saw a recovery despite the news of Moody’s downgrading the US credit rating. However, the price action faced a setback as the apex coin dropped below the critical support at $107K.

The price action analysis shows that the Bitcoin price is testing the lower Fibonacci level in the fib fan indicator on the 4-hour chart. The BTC price faced rejection at the 0.382 fib level and dropped to test the 0.236 fib level.

The lower fib level coincides with the lower fair value gap (FVG), which is a technical indicator used to identify areas of unmitigated demand or supply. The BTC price showed signs of a recovery as it bounced off the lower FVG and showed potential for a move toward the 0.5 fib level.

On the other hand, the relative strength index (RSI) is showing signs of oversold conditions as it dropped below the 30 mark. The lower RSI reading might put additional pressure on the price to recover.

The price action is unfolding within a broader compression zone, which is formed by the upper FVG at $109K to $110K and the lower FVG at $106.5K to $107K. The BTC price is currently trapped between these two major FVGs, which are also the threshold for the upcoming market direction.

If the bulls reclaim the $109K to $110K area, the bulls could gain strength and push the levels towards the higher resistance beyond $112K. These levels line up with a larger supply zone and could become a key-magnet zone.

On the flip side, if the BTC fails to hold the lower FVG and breaks below $107,000, it may enter the liquidity pool around $106K, which could be supported by price inefficiency and unmitigated demand just below.

The current trade setup hints towards a major compression, and hence it is important that the Bitcoin (BTC) price does not get trapped in the middle range. Therefore, it would be important to witness which FVG will be filled ahead of the monthly close.