Bitcoin Dip Drama: Will BTC Rally or Freeze Frame?

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Okay, folks, Monday gave Bitcoin a shiny new all‑time high, but that multi‑year trendline gave it the old one‑two and sent it reeling. It’s lost about $5,500 since the top-hardly a crater, more like a shallow kiddie pool splash. So, is there more to come, or are the Bitcoin bulls ready to thunder back and blast BTC into price discovery? 🐂💥😂

Deeper dip, or back to the highs from here?

In the glorious 4‑hour frame, this dip is so shallow you could almost skim it with a feather. The blue Fibonacci extension lines say we just barely slipped below 0.236-the first rung on the ladder. If we wring one more heroic push back to the top, it would be a bullish symphony, folks. 🎶📈

That said, deeper reversals are the healthier snacks on the price-graph buffet; they tend to fuel longer‑term upside. If the price slides to the 0.382 Fibonacci-cozy with solid support-or even to the 0.5, the next swing high could come with more oomph and momentum. Think of it as training for a marathon, minus the shoes. 🏃‍♂️💨

Nevertheless, the market does what the market does, and if it’s up from here, so be it. The Stochastic RSI is primed to rise, and the RSI at the bottom could start ticking up. These would suggest that maybe we’ve found a bottom and BTC could waltz back up toward the multi‑year trendline and a dazzling new all‑time high. 🕺💸

Inverse head and shoulders pattern continues to form

As we teased Tuesday, an inverse head and shoulders pattern might be negotiating its way beneath that long‑term ascending trendline. The right shoulder could be low enough already, or we might dip a tad further, perhaps down to the $120,000 horizontal support level. 🕳️🧔

The RSI, all the way at the bottom, still has its line above the descending trendline. If we drop a bit more, that could line up with a slight price dip hitting horizontal support. And if the price just meanders sideways and then climbs, that would still be enough to form that right shoulder. A little drama, a little romance, and a whole lot of charts. 💃📊

As laid out in yesterday’s article, the measured move would take the BTC price to around $145,000. Cue the trumpets. 🎺💥

Is an 8-year trendline about to be broken?

The monthly view gives us a grand bird’s‑eye look at the multi‑year trendline. It began at the 2017 bull market peak, kissed it again at the 2021 top, and has been tested three times in this current bull. It’s the kind of line that says, “Don’t cross me, camper.” 🧭

With indicators telling us the current rally may not be topping out anytime soon, maybe this eight‑year barrier could finally bow out. When such a long‑standing wall comes down, the upside momentum could be enormous. Cue the fireworks! 🎆🚀

But wait-bearish divergence is throwing a little hissy fit. The Stochastic RSI and the RSI on these long timeframes are showing divergence. First, the Stochastic RSI needs to cross back up-as it has on the weekly and 2‑week frames. Second, the RSI must break above that stubborn descending trendline, which it’s right up against now. If both events happen, we may very well see a breakout beyond the eight‑year line and prices soaring to astonishing levels. Grab your popcorn-this is a blockbuster. 🍿📈

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2025-10-08 13:49