Back to Basics: Fibonacci Retracement of the CycleBitcoin all time history indexINDEX:BTCUSDCentral_CryptoTraders🔎 Weekly Chart: BTC Closes GAP and Moves Towards 69K? The weekly close brought new critical insights to the market, reinforcing the idea that the correction may not be over. In addition to the CME Futures GAP, which extends between 80.6K and 78K, Bitcoin is finishing the closure of GAP 1 on the weekly chart and still has GAP 2 ahead, sitting just below. 📌 Is the Yellow Rectangle a Strong Demand Zone? The yellow rectangle, highlighted around the 0.618 Fibonacci level (72.8K) with a bottom at 69K, could be signaling a potential valid Demand Zone where major players might be positioned. To validate this thesis, we observe: ✅ The 0.618 Fibonacci retracement has historically acted as a major institutional support level, making it a strategic buying zone. ✅ The 69K region aligns with the all-time high of 2021, suggesting it could serve as a psychological support level for the market. ✅ The Volume Profile shows a lower transactional interest between 80K and 72K, creating a potential liquidity void that could be filled quickly in a sell-off. 🛑 Can BTC Drop to 69K? Scenarios for This Level Losing 80K could trigger a cascading liquidation event, driving BTC towards lower support levels. The main reasons supporting a move down to 69K include: 1️⃣ GAP Closure: The CME Futures GAP is already in the process of closing, and just below it, GAP 2 on the weekly chart suggests that further corrections may still be ahead. 2️⃣ Liquidity & Volume Profile: There’s a lack of strong buying interest between 80K and 72K, making it easier for BTC to drop to the 0.618 Fibo level. 3️⃣ Macro Sentiment: Fear in the market is increasing with capital outflows from ETFs and macroeconomic events influencing risk appetite. 4️⃣ Technical Indicators: On the weekly chart, Wavetrend and MoneyFlow are declining, while the KDJ indicator remains in the oversold zone, suggesting more downside potential before a meaningful recovery. If the Order Block at the 0.618 Fibonacci level is validated, 69K could become a crucial support level, potentially setting the stage for a new bullish rally if the market stabilizes. Otherwise, BTC may test even lower price levels. 📊 Volume Profile: VAL Extends from 96.6K to 70.1K – Key Liquidity Zone An important observation on the weekly chart is the Value Area Low (VAL), which stretches from 96.6K down to 70.1K, highlighted in the image with a blue circle and two blue flags marking the upper and lower boundaries of this range. This range represents a high-volume liquidity zone where price action has historically shown strong reactions. Why is this range significant? ✅ The upper boundary at 96.6K has acted as resistance, where price faced selling pressure in previous attempts to break higher. ✅ The lower boundary at 70.1K coincides with the 0.618 Fibonacci retracement, reinforcing the potential for a strong demand zone. ✅ Inside this range, trading volume has been consistently high, indicating that institutional players may have positioned themselves here. ✅ If BTC loses the 80K support, the lack of strong liquidity pockets between 80K and 72K could lead to a rapid move toward the lower VAL limit. If Bitcoin revisits this range, watch for potential buy-side interest at the lower boundary (70.1K), which could serve as a critical support level for a reversal. However, a failure to hold this level could open the doors for deeper corrections below 69K.