According to the analyst, Bitcoin could see a strong reaction if the price were to fall to that region. A bounce from this support could drive the Bitcoin price back to $64,400, which would then be tested as resistance instead of support.
However, such a rebound may only be temporary. If the macro fifth wave structure continues to play out, the market could still be setting up for one final push lower after that retest. According to Tara’s wave interpretation, this final push lower could extend to as low as $52,000.
Interestingly, the Relative Strength Index indicator on the 4-hour timeframe is trending lower and approaching oversold territory. Tara advised traders to watch for bullish divergence on the RSI during the next drop. A bullish divergence on the RSI could be the first sign of the end of the corrective structure.
Bitcoin Might Register Higher Support At $64,000A drop back below $64,000 would weaken the short-term recovery and could expose the prior swing low at $60,500. On the flip side, bullish momentum would be confirmed if Bitcoin breaks above $70,000.
