A Major Downturn Commencing in the Crypto Market?

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A Major Downturn Commencing in the Crypto Market?

  

As noted in our previous Bitcoin analysis of October 15, 2025, the chart's technical posture suggested a high potential for a correction, a scenario that has since materialized.
 

For the third consecutive month, Bitcoin has pulled back from its parabolic rise. This period of stagnation has, on the whole, instilled a degree of fear among buyers. On long-term timeframes, such as the monthly and weekly charts, the prevailing trend is still interpreted as bullish, nevertheless, because the price is in an overbought state and there is a notable divergence with the RSI and other technical indicators, initiating new buy positions may carry significant risk.
 

Should prices fail to appreciate, market sentiment may increasingly align with the view that a significant top has been formed, highlighting a general weakness in Bitcoin. This could provide the catalyst for the current stagnation to evolve into a full-scale sell-off.
 

On shorter timeframes, such as the daily and 4-hour charts, Bitcoin is currently in a corrective phase, and ideal conditions for a bullish move have not yet materialized. The formation of a "Spinning Top" candlestick pattern on the 21st signifies market indecision and the subsequent stalling of the recent upward momentum. If this correction deepens, traders will be closely monitoring the psychological $100,000 level, which is poised to act as a key support.
 

Conversely, in a bullish scenario, the first significant signal for an upward move would be a decisive break and hold above the key $112,000 level. This would restore optimism among buyers. In such an event, their initial target would be the $115,000 resistance, with a more extended move targeting $117,000.

 

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