LayerZero/Bitcoin Market Overview (ZROBTC) — 2025-09-22

• ZROBTC opened at $0.00001742 and closed at $0.00001618, declining 6.7% after a sharp drop during early trading hours.
• Price traded in a tight range during the overnight session before breaking down decisively between 00:45 ET and 01:00 ET.
• Volatility spiked as ZROBTC fell below $0.00001700 and later tested a key support near $0.00001620, confirmed by a bearish engulfing pattern.
• Turnover reached $31,027.43 at 16:00 ET, suggesting potential accumulation or significant sell pressure.
• RSI hit oversold territory at the close, hinting at a possible short-term rebound, though trend remains bearish.

Opening Narrative

LayerZero/Bitcoin (ZROBTC) opened at $0.00001742 at 12:00 ET–1 and closed at $0.00001618 at 12:00 ET. The 24-hour range was between $0.00001742 and $0.00001589. Total volume reached 310,274.3 units, with a notional turnover of $31,027.43, indicating heightened activity during the bearish phase.

Structure & Formations

Over the past 24 hours, ZROBTC has formed a bearish bias marked by a series of lower highs and lower lows. A key support level appears to be forming at $0.00001620, where price found a temporary floor multiple times. A bearish engulfing pattern formed as price broke below $0.00001700, confirming a shift in sentiment. The session high at $0.00001742 now acts as a potential resistance. A doji candle at $0.00001619 suggests a brief pause in selling pressure but does not confirm a reversal.

Moving Averages

The 15-minute chart shows the 20SMA and 50SMA both below the current price, reinforcing the bearish momentum. On the daily chart, the 50DMA, 100DMA, and 200DMA are all aligned in a descending formation, indicating a strong downtrend. Price has traded below all major moving averages for the past 48 hours, which may suggest further downward pressure ahead.

MACD & RSI

MACD has shown a consistent bearish divergence with price, especially during the morning sell-off. The histogram has contracted as the downtrend has matured, indicating reduced momentum. The RSI has fallen into oversold territory, ending at 29, which may hint at short-term buying opportunities. However, this may not be sufficient to reverse the overall bearish bias.

Bollinger Bands

Price has remained within the lower band of the Bollinger Bands for much of the session, reflecting low volatility. A sharp drop between 00:45 and 01:00 ET widened the bands slightly, suggesting increased uncertainty. If ZROBTC remains below the 20-period band for the next session, it may indicate further bearish continuation.

Volume & Turnover

Volume spiked significantly between 00:45 ET and 01:00 ET, confirming the sharp downward move. Turnover reached a high of $31,027.43 during this period, suggesting possible accumulation by larger traders or a panic-driven sell-off. The lack of follow-through buying in the afternoon suggests weak conviction on the buy side.

Fibonacci Retracements

Applying Fibonacci to the recent 15-minute swing from $0.00001742 to $0.00001618, the 38.2% retracement is at $0.00001674, while the 61.8% is at $0.00001644. Price is now consolidating near the 61.8% level, suggesting a possible short-term rebound. On the daily chart, the 61.8% retracement of the longer-term bearish trend is near $0.00001630, which could serve as a short-term floor.

Backtest Hypothesis

Given the recent price behavior and indicators, a potential backtesting strategy could involve entering short positions when RSI crosses below 40 and the 20SMA crosses below the 50SMA. A stop-loss could be placed above the 61.8% Fibonacci level at $0.00001644, while take-profit targets could aim for the 50% retracement at $0.00001630 or key support at $0.00001620. If price stabilizes at these levels with a bullish candlestick formation, the strategy could reverse to long. This approach aligns with the bearish momentum observed but allows for flexibility in a volatile market.