ZKsync/Bitcoin Market Overview

Summary
• ZKBTC declined 7.14% over 24 hours, with bearish momentum intensifying in late ET sessions.
• Volume surged to $607,585.9 as price approached $0.00067, signaling increased bearish participation.
• RSI dipped to oversold territory, indicating potential for short-term consolidation or reversal.
• Bollinger Band contraction in early hours hinted at lower volatility before the downward breakout.

ZKsync/Bitcoin (ZKBTC) opened at $0.00070 on 2025-11-06 12:00 ET and closed at $0.00067 by 2025-11-07 12:00 ET. The 24-hour low was $0.00063, while the high reached $0.00075. Total volume traded was 17,724,363 tokens, with a notional turnover of $12,473,710.

Structure & Formations

Price formed a bearish continuation pattern following a failed bullish attempt above $0.00075. A key resistance level appears to be forming near $0.00075, as the market tested this area twice before retreating. A critical support zone exists between $0.00068 and $0.00067, which has held on three occasions over the past 24 hours. A potential doji at $0.00068 on 2025-11-07 12:00 ET may indicate indecision, suggesting further consolidation is likely.

Moving Averages

The 20-period and 50-period moving averages on the 15-minute chart show a bearish crossover, reinforcing the short-term downtrend. Daily moving averages (50, 100, and 200-period) are aligned bearishly, indicating a broader downward bias. Price has remained below all these averages, supporting the view of a sustained bear phase.

MACD & RSI

MACD remains in negative territory, with the histogram showing a bearish divergence from price lows. RSI has fallen below 30, entering oversold territory, indicating the potential for a temporary bounce or consolidation. However, as long as the RSI remains below 50, bearish momentum is expected to persist.

Bollinger Bands

Bollinger Bands tightened significantly between 00:00 and 04:00 ET, indicating a period of low volatility before a sharp bearish breakout. Price has since closed below the lower band, confirming bearish momentum. The current deviation of -2.26 sigma suggests a high volatility environment is in place.

Volume & Turnover

Volume surged sharply after 04:00 ET, peaking at 647,721.4 tokens at 04:30 ET as price dropped from $0.00066 to $0.00065. This increase in volume suggests strong bearish conviction. Notional turnover followed a similar pattern, peaking at $607,585.9, aligning with the price decline. No clear divergence between volume and price was observed during the downtrend, reinforcing the bearish case.

Fibonacci Retracements

Key retracement levels at 38.2% ($0.00069) and 61.8% ($0.00065) have served as significant support/resistance over the past 24 hours. The recent pullback has tested the 61.8% level, which appears to be holding as support. A break below this level could target the next Fibonacci extension at $0.00062, suggesting further downside risk remains.

Backtest Hypothesis

The proposed short-trading backtest could build on the RSI overbought signal (> 70), which historically has acted as a trigger for bearish reversals in ZKBTC. A logical exit rule would be to close the short position once RSI reverts below 50, aligning with common mean-reversion strategies. For execution, using the open price of the next bar is a conservative and realistic assumption, especially for fast-moving crypto pairs. Optional risk controls such as a 5% stop-loss and 10% take-profit could be considered to manage drawdowns and lock in gains. If run, this strategy would aim to capture short-term bearish swings while adhering to tight risk management.