BTCUSD correction wave forms sell signal targeting 93,700

The BTCUSD rate is exhibiting signs of a corrective decline after reaching new local highs. The catalyst for this profit-taking appears to be the agreement between the US and China on a 90-day suspension of mutual tariffs, which has led to a temporary weakening of demand for safe-haven and alternative assets. The pair is now trading below the $103,000 level, having dropped more than 3% from its recent high of $105,813.

A technical analysis of BTCUSD on the H6 timeframe reveals the formation of an impulsive uptrend following a breakout from a descending channel that had confined the asset since the end of January.

The wave structure suggests the completion of the fifth wave, which reached the critical Fibonacci extension level of 261.8%, traditionally viewed as an extreme zone.

Current market dynamics indicate the potential formation of a new wave structure in the opposite direction. The breakdown of the accelerated ascending channel line increases the likelihood of a downward correction.

The Moving Average Convergence Divergence (MACD) indicator (12, 26, 9) further corroborates this shift in momentum. Its histogram has moved into negative territory and continues to decline, signalling weakening bullish pressure.

From a candlestick analysis perspective, a bearish candle with a long upper shadow formed near the $105,813 high, indicating price rejection in the overbought zone. This was followed by a series of candlesticks showing consecutive lower highs and lower lows, confirming the transition into a correction phase.

As long as the pair remains within the main ascending channel, the potential for further upward movement persists. However, a breakdown below the support level near $100,200 would signal the end of the current bullish structure and the initiation of a new downward wave.

The short-term outlook for BTCUSD suggests a price decline with a target mark of 93,700.00. 

Part of the profit should be taken near the level of 98,350. 

A stop-loss could be placed at the level of 108,500.00.

The bearish scenario is short-term, so a trading volume should not exceed 2% of your balance.