Bitcoin’s Plunge: A Tale of Woe or a Golden Opportunity in Disguise?

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Ah, the world of Bitcoin, where fortunes rise and fall faster than a chocolate factory’s conveyor belt! Amidst the hullabaloo in Davos, where the bigwigs are busy rearranging deck chairs on the Titanic, our beloved Bitcoin has taken a tumble. While gold is strutting its stuff like a peacock, Bitcoin has slipped below the $90,000 mark-a support level as crucial as the last slice of cake at a children’s party. Will it bounce back, or is this the beginning of a very long nap?

Short-Term Shenanigans

A quick squint at the short-term chart reveals a scene more chaotic than a classroom of Oompa-Loompas on a sugar high. Not only has Bitcoin plummeted through the bottom of its ascending triangle (fancy talk for “it’s gone south”), but it’s also lost its grip on the $90,000 support. Now, that level has turned into resistance faster than you can say “scrumdiddlyumptious.” A quick wick back to this level confirms it-the bears are having a field day.

And let’s not forget the downtrend line from $95,000, which Bitcoin is respecting like a well-trained squirrel. Until it breaks through, the downward spiral continues. The longer it lingers below $90,000, the more likely it is to take a nosedive. Bulls, you’d better hold onto $87,500 like it’s the last golden ticket in town!

Fibonacci’s Fancy Footwork

Zoom out to the daily chart, and you’ll see Bitcoin dancing with Fibonacci like a couple at a waltz competition. It’s come close to the 0.618 level-the optimum retracement, they say. But will it tap it properly, or will it plunge further to the 0.786 level at $84,200? Oh, the drama!

The bulls, ever the optimists, are crossing their fingers for a reversal to that 0.618 level, which conveniently aligns with the $87,500 support. Meanwhile, the Stochastic RSI indicators are scraping the bottom of the barrel, hinting that a recovery might be brewing. Bulls, this is your moment to shine-don’t blow it!

The Next Few Days: A Cliffhanger

Now, let’s peek at the weekly chart, where the major trendline is sitting pretty between the 0.5 Fibonacci and the $90,000 level. With such a grand time frame, there’s a chance Bitcoin could close the week above $90,000, keeping it as support. But time is ticking, and the stakes are higher than the expectations for a new Roald Dahl book.

If Bitcoin can reverse back into its ascending triangle by week’s end, a breakout could still be on the cards. But if it slips below the trendline, it might head for the $80,000 support-the last line of defense before a freefall to $74,000/$69,000, the old bull market peak. Yikes!

And let’s not forget the elephant in the room: a potential US/Europe trade war. Will Bitcoin’s superpower of being untethered to any third party make it the go-to safe haven? Or will it crumble like a poorly baked cake? Only time will tell, dear reader, only time.

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2026-01-21 14:33