Bitcoin’s price is recovering from a recent dip that briefly tested investor conviction. Trading above key support, the crypto king continues to reinforce its long-term uptrend.
However, historical trends suggest that BTC may first need a slight correction before pushing toward a new all-time high (ATH).
Bitcoin Needs to Fall In Order To Rise
Bitcoin’s path to a new record might require an 8.7% decline in the coming days. The $101,634 level holds the 38.2% Fibonacci Retracement line, which has historically served as a launch point. Each bounce from this Fib level in prior rallies triggered a rapid surge in BTC’s value.
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A similar setup could be forming now. If Bitcoin retraces to this crucial level, it may provide the base for the next strong rally. Historically, such moves have helped reset market momentum and also built the foundation for sustainable growth, potentially leading BTC beyond its current highs.
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The broader momentum signals caution. The Network Value to Transactions (NVT) ratio, often used to assess whether Bitcoin is overvalued relative to on-chain activity, has been declining. Typically, an uptick in NVT coincides with overheated conditions and precedes a price drop. Instead, the indicator’s cool-off suggests subdued activity.
This cooling market dynamic reduces the likelihood of an immediate sharp decline, making it harder for BTC to touch the Fibonacci retracement level. Without such a dip, the historical playbook may not unfold as expected, potenti
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Author: Aaryamann Shrivastava
