Bitcoin declined modestly on Friday as its recent rally lost momentum, with enthusiasm about lower US borrowing costs beginning to fade. New data suggests the cryptocurrency may be approaching a cycle top.<\/p>\n
According to crypto trader CasiTrades, Bitcoin has reached the 0.618 Fibonacci retracement level at around $117,900, which she described as a textbook target for a potential Wave 2 pivot. This level represents one of the most common bearish turning points in a market cycle. Several technical patterns are converging at this point, including the completion of a larger Wave 2 ABC pattern and the alignment of five clear subwaves within the C wave, all targeting the same retracement zone. The Relative Strength Index is showing multiple bearish divergences up to the four-hour chart, indicating weakening momentum.<\/p>\n
A decisive move below $113,000 would confirm a downward trend, with potential targets near $96,000 or $90,000. The analyst believes the recent $118,000 high may represent the anticipated market top, unless Bitcoin breaks RSI resistance and pushes to new all-time highs. CasiTrades noted that the market is showing all the classic signs of topping.<\/p>\n
On September 19, Michigan’s Bitcoin Reserve Bill advanced through its second reading in the state House before moving to the Government Operations Committee. The proposal would allow up to 10% of state funds to be allocated into cryptocurrency, potentially setting the stage for broader institutional adoption, though its near-term impact remains limited.<\/p>\n
Political resistance poses a bigger risk, with Bitunix Analysts warning that any pushback could trigger sharp, liquidation-driven pullbacks in Bitcoin.<\/p>\n
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