Amid the latest Bitcoin price struggles, a prominent market analyst has warned of a steeper decline if rejection hits at the $120,000 psychological mark.
Technical analyst CasiTrades, who has over a decade of market experience, outlined a setup that could determine whether Bitcoin continues its correction or breaks into new highs.
According to CasiTrades, Bitcoin has completed Wave 1 of a corrective A-wave after bottoming at $112,500 earlier today. The analysis notes that this level aligned with multiple targets across different timeframes and also showed bullish divergences on momentum indicators, suggesting that a relief bounce was due.
If Bitcoin climbs toward the $120K-$122K zone and then faces strong rejection, it could trigger a larger Wave 3 decline. According to Casi, downside targets could reach as low as $88K.
However, the bearish setup would be invalidated if Bitcoin breaks into a new all-time high above the previous $124,500 peak. Such a move would require a complete reassessment of the corrective structure.
While Bitcoin battles resistance, CasiTrades expects altcoins to shine during this Wave 2 bounce. She believes large-cap coins like XRP may see stronger upward moves as traders rotate into higher-beta assets while Bitcoin stalls under resistance.
At the moment, XRP is also feeling the impact of Bitcoin’s correction, with its price dipping to $2.85 earlier today. Bulls are attempting to counter the bearish pressure, and XRP is now trading at $2.90, though still down 1.34% over the past day.
Meanwhile, Ethereum has entered positive territory, showing 2% gains and trading at $4,270 at press time. A similar scenario is unfolding with Solana, which is now posting a 3% gain over the past 24 hours, trading at $183.55.
Among the top-ranking altcoins, Chainlink (LINK) is seeing the biggest comeback. It now trades with a significant 8% gain at press time, priced at $25.91, while many other rivals remain in the red.
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