Market Overview for LayerZero/Bitcoin (ZROBTC)

• Price declined from 1.806e-5 to 1.702e-5, with 1.76e-5 acting as a key support.
• RSI indicated oversold conditions near 30, but price failed to rebound decisively.
• Volatility expanded through Bollinger Bands as volume surged in the 14:45–16:00 ET range.
• A bearish engulfing pattern formed at 1.78e-5, followed by a deep retracement to 1.702e-5.
• Fibonacci retracements identified 1.76e-5 as a 61.8% level from the 1.806e-5 high, now a key support.

Price Action & Structure

LayerZero/Bitcoin (ZROBTC) opened at 1.768e-5 on 2025-09-13 12:00 ET and closed at 1.705e-5 on 2025-09-14 12:00 ET, hitting a high of 1.806e-5 and a low of 1.702e-5. The total volume for the 24-hour period was 17,203.83 with a notional turnover of 3.0759 BTC. A bearish engulfing pattern formed near 1.78e-5, followed by a significant retracement, suggesting ongoing bearish momentum. Key support levels to watch include 1.76e-5 (61.8% Fibonacci) and 1.74e-5 (oversold RSI bounce candidate).

Technical Indicators

The 20-period and 50-period moving averages on the 15-minute chart both trended lower, confirming the bearish bias. RSI dipped into oversold territory near 30 but failed to trigger a meaningful bounce, signaling potential exhaustion. MACD remained bearish, with a negative histogram expanding. Bollinger Bands saw a notable expansion, indicating rising volatility, especially in the 14:45–16:00 ET window. The price closed near the lower band, suggesting heightened bearish sentiment.

Fibonacci & Volatility Analysis

Fibonacci retracements applied to the recent 1.76e-5 to 1.806e-5 swing identified 1.76e-5 as a key 61.8% level. A potential bounce from this area could lead to a retracement toward 1.78e-5 (38.2%), or a breakdown could target 1.73e-5. Volatility appeared to contract early in the 24-hour period but expanded significantly after 14:45 ET. Volume surged in the same window, confirming the bearish break below 1.72e-5 and reinforcing the strength of the move toward 1.702e-5.

Backtest Hypothesis

The backtest strategy focuses on identifying bearish engulfing patterns at key Fibonacci levels, especially those that occur after RSI enters oversold territory. Given the recent pattern at 1.78e-5 and the subsequent move to 1.702e-5, a short entry could be considered if price breaks below the 1.74e-5 level with increasing volume. A stop-loss may be placed just above the 1.76e-5 support, while the target would aim for 1.71e-5. This aligns with the technical signals observed in the 24-hour period and provides a defined risk/reward profile for a potential short-term bearish trade.