Technical Indicators Suggests Bitcoin Reversal is Imminent

Manuel

Summary:

If this technical pattern repeats, it could signal a strong bullish rebound from this current zone.

BUY BTC-USDT

Close Time

CLOSED

91556.0

Entry Price

107000.0

82000.0

64547.9 +969.7 +1.53%

9556.0

Pips

Loss

82000.0

Exit Price

91556.0

Entry Price

107000.0

A sharp sell-off in the cryptocurrency market has triggered a liquidation cascade, soaring past $100 million in a single 60-minute period as the price of Bitcoin (BTC) breached a critical psychological threshold.

Bitcoin retreated to a low of $89,037 shortly before 1:00 PM (Eastern Time), extending the bearish action seen over the past few days. This represents a 4% drop on the day and a cumulative loss of 12.3% for the week, according to CoinGecko data. With Bitcoin piercing the psychologically significant $90,000 level, the overall sentiment across the crypto market has plunged into "Extreme Fear," as measured by the Crypto Fear and Greed Index.

Major digital currencies are facing pronounced setbacks in the current session. Ethereum (ETH), XRP, and Dogecoin (DOGE) have all fallen by more than 7% over 24 hours. ETH, the second-largest cryptocurrency by market capitalization, is trading hands around $2,900, while Solana (SOL) has slipped 6% toward the $131 mark.

In significant industry news, crypto exchange Kraken, one of the sector's most venerable platforms, has confidentially filed paperwork for an Initial Public Offering (IPO) in the United States. This strategic move occurs during a year marked by a boom in crypto-industry listings, fueled in part by a seemingly friendlier regulatory environment for the sector under the current administration.

Kraken, founded in 2011, has been operational longer than many of its peers and has hinted for years at its plans to become a publicly traded company on the U.S. market. The company now offers a comprehensive product suite that spans over 450 digital assets, U.S. futures, stocks, Exchange Traded Funds (ETFs), and institutional services. Its recent valuation soared to $20 billion after its most recent funding round, reflecting a remarkable 33% increase in less than two months.

In a strong indication of its ambitious vision to transform into an "exchange of everything," Coinbase appears to be developing early-stage features to integrate prediction markets and tokenized stock trading directly into its mobile application. Independent analysis of the app's code has uncovered testing interfaces that suggest the cryptocurrency platform is working toward becoming a multifaceted hub, allowing users access to diverse markets through a single, unified interface.

This revelation stems from detailed scrutiny performed by independent researcher Jane Manchun Wong, who decompiled publicly available Coinbase app code and shared screenshots on X (formerly Twitter). According to Wong, the app displays tabs labeled "Stocks" and "Predictions," alongside regulatory disclosures suggesting integration with Kalshi, a U.S.-regulated prediction market operator. One explicit fine-print note, according to coverage, states: "Prediction markets are offered by Coinbase Financial Markets through KalshiEX LLC." Technical Indicators Suggests Bitcoin Reversal is Imminent_1

Technical Indicators Suggests Bitcoin Reversal is Imminent_1

Technical Analysis

The BTC/USD pair rapidly declined amid the liquidation cascade, dropping to the $88,700 level. This price point is historically significant: on two prior occasions, price action briefly touched this region (back in December of last year) before mounting a sharp reversal. If this technical pattern repeats, it could signal a strong bullish rebound from this current zone. A key technical indicator bolstering this outlook is the Relative Strength Index (RSI), which plunged to 21.79 on the daily chart —levels not seen at any point during this year—a condition that typically encourages buyers to step in and take control.

The 100-period and 200-period Moving Averages (MAs) are positioned around $111,093 and $110,305, respectively, indicating that the medium-term average price sits near the $110,000 mark. A potential upward correction could be drawn toward the vicinity of these MAs. The nearest major resistance is located at $107,400, suggesting that the price and the moving averages could converge near this zone during an initial upswing. However, a new wave of selling pressure and a decisive break below the current local low would invalidate this bullish setup, opening the path for a deeper and more significant correction.

Trading Recommendations

Trading direction: Buy

Entry price: 91350

Target price: 107000

Stop loss: 82000

Validity: Dec 02, 2025 15:00:00

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Technical Indicators Suggests Bitcoin Reversal is Imminent

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