Bitcoin Hits Local High of $87,400: How Low Will the Correction Go?

The Bitcoin price has reached a local top of $87,400 after a short but powerful rally out of a bull flag that added another $6,000. The market is currently in a pause phase as it digests this latest move.

With the BTC price now overbought, the question remains: how far down will the correction go?

The 4-hour chart shows the explosive move out of the parallel channel since August, with the price almost touching $87,400. Now in a corrective phase, it's unclear whether the price will chop up and down or form another bull flag.

Fibonacci retracement levels suggest that the price may go as low as the 0.618 level, which matches support at around $57,800. However, this could also mean the price retests the ascending trendline's support.