Bitcoin price action remained choppy around Tuesday’s Wall Street open, as analysts using Wyckoff analysis pointed to a potential market bottom forming before the end of the month. While short-term downside may be limited for now, broader volatility is still firmly on the table.
Bitcoin (BTC) traded near $89,000 after briefly testing higher levels, with analysts closely watching whether the market can avoid another sharp move lower.
Bitcoin Price Holds Key Levels, but Volatility Still Expected
Data from TradingView showed BTC/USD climbing to $88,315 before retracing lower. Despite the bounce, Bitcoin remains stuck in a narrow trading range, offering little conviction to either bulls or bears.
According to analysts, Bitcoin may be protected from setting fresh local lows during the current U.S. trading session. However, the rest of the week is expected to bring increased volatility, especially with major macroeconomic events approaching.
Keith Alan, co-founder of trading analytics platform Material Indicators, highlighted a new buy signal on the daily Bitcoin chart.
“A new Trend Precognition signal on the $BTC Daily chart does not necessarily mean Bitcoin will test resistance today,” Alan wrote on X. “But it does suggest a high probability that price will not revisit yesterday’s low.”
Alan referenced Monday’s brief dip below $87,000 and noted that BTC needs to close the daily candle above the yearly open near $87,500. A failure to do so, he warned, could signal weakness and increase the risk of a breakdown.
Bitcoin Momentum Shows Signs of Stabilization
As U.S. equities opened modestly higher, both the S&P 500 and Nasdaq Composite Index attempted to stabilize, while gold showed signs of retesting the $5,000 level as support.
Against this backdrop, on-chain Bitcoin price momentum data offered cautious optimism. Analysts at CryptoQuant pointed to early signs of stabilization rather than a strong bullish breakout.
“Daily price momentum is positive at approximately $1,676, with a momentum of 1.93%,” CryptoQuant contributor Arab Chain explained in a Quicktake report. “This suggests a moderately higher closing price compared to the opening price, reflecting an effort by the market to regain balance after recent selling pressure.”
However, the data does not yet confirm a strong bullish trend. Instead, Bitcoin appears to be in what Arab Chain described as a “period of anticipation,” with order-book activity indicating consolidation rather than aggressive accumulation or distribution.
Wyckoff “Spring” Event May Push Bitcoin Below $80K
Market uncertainty is expected to intensify later in the week, particularly ahead of the U.S. Federal Reserve’s interest rate decision and comments from Chair Jerome Powell. Despite political pressure for rate cuts, expectations remain low, with data from CME Group showing less than a 3% probability of a cut.
According to analysts, these macro events could act as a catalyst for Bitcoin’s next major move.
Crypto commentator MartyParty believes a key Wyckoff “spring” event—a long-term swing low—could occur around the same time. Using Wyckoff market structure analysis, he warned that BTC/USDT could briefly dip below $80,000 before finding support.
“This aligns with a Wyckoff Spring Event,” MartyParty told followers on X. “Expect volatility.”
As previously reported, traders are preparing for increased turbulence in the second half of the week, with Bitcoin price analysis increasingly focused on downside liquidity zones.
Bitcoin Outlook: Caution Before the Next Move
While short-term price action suggests Bitcoin may avoid immediate new lows, Wyckoff analysis and macroeconomic uncertainty continue to point toward heightened volatility ahead. Whether BTC can maintain support above key levels—or briefly dip below $80,000—may depend on how markets react to upcoming Federal Reserve signals.
For now, Bitcoin remains in a holding pattern, with traders watching closely for confirmation of the next major trend.
