Bitcoin has reached its highest price level in nearly three months, recouping $79,000 thanks to a new institutional appetite. However, technical analysis shows that this rally is not a reason to celebrate, because it has created an imperfection. According to technical analyst TARA, an important Fibonacci macro resistance level now sits directly above it, and Bitcoin could see a strong reaction at this level.
Bitcoin Nears Macro Resistance Around $80,000
Bitcoin surpassed $79,000 on April 22, hitting an 11-week high after President Trump extended the ceasefire between the United States and Iran. This development allayed immediate fears of a resumption of conflict near the Strait of Hormuz, and this was enough to trigger capital inflows. in different investment markets.
THE latest analysis of Crypto analyst TARA is based on Bitcoin interacting with the 0.382 Fibonacci macro resistance, positioned between approximately $79,000 and $81,000. BTC climbed in a structured sequence, forming higher highs and lower lows within this resistance zone on the daily candlestick price chart. According to the analyst, BTC’s recent rally is a final approach to a wall, one that it has hit before and believes it will hit again.
His chart shows Bitcoin completing what appears to be an ABC corrective wave structure, with price sitting at the wave top (C) around the 0.382 Fib level. At the time of writing, Bitcoin is trading at $77,655. The projection is that it will reject between $79,000 and $81,000 before embarking on a significant decline towards another Fib macro level.
Bitcoin Price Chart. Source: @PrecisionTrade3 on X
BTC price crash coming by 20%
TARA highlighted another technical warning found in a price momentum indicator. The RSI on the mid-period charts is already showing a bearish divergence, meaning that as prices increase, momentum decreases. At the time of analysis, the indicator was at 65.47 with its signal line at 61.02.
Based on the current setup, TARA expects this divergence to persist until the final push towards resistance. If the RSI continues to flatten or decline while Bitcoin tests the $79,000-$81,000 range, it would reinforce the idea that the move is running out of steam. A similar analysis of Crypto analyst Michael van de Poppe also acknowledged that the $79,000 level is filled with sell orders that have caused the BTC price to decline slightly.
The downside target is not modest if TARA’s analysis is correct, as the prediction is that Bitcoin will at least return to the 0.5 Fibonacci macro retracement, which currently sits around $64,500. This would indicate a decline in the resistance zone of around 18% to 20%. If the broader corrective structure is fully implemented, then Bitcoin could suffer a complete decline move to support levels around $52,000.
Featured image created with Dall.E, chart from Tradingview.com
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