In the past week, Bitcoin has been trading within a narrow band between $108,000 and $112,000, lacking a clear direction. There have been multiple rejections at the $112,000 price level, and technical analysis indicates significant pressure around the 200-day moving average on the four-hour chart. Notably, crypto analyst Daan Crypto's technical analysis suggests that Bitcoin is at risk of breaking below $100,000, but bulls still have a chance for a recovery in the upcoming weeks.
Key Points
- Bitcoin's price fluctuates between $108,000 and $112,000, showing indecision.
- Technical analysis indicates potential panic if it breaks below $107,000.
- Support levels identified in the $103,000 to $105,000 range could provide buying opportunities.
- Bulls need to break above $115,000 to reverse short-term bearish momentum.
- Bitcoin is currently trading at $111,733, up 0.7% in the last 24 hours.
In-Depth Analysis
According to Daan Crypto’s analysis, Bitcoin is currently indecisive and may test the monthly lows in upcoming trades. The four-hour candlestick chart indicates that the price recently faced rejection at the 200-day moving average and EMA, creating a weak support base around $107,000. Should this level be breached, panic could ensue, increasing the likelihood of falling below $100,000.However, the analyst also highlights the $103,000 to $105,000 price range as a potential buying zone. Should buyers step in at this level, it could prompt a rebound, creating conditions to break the current downtrend. If Bitcoin can hold above this area, it may pave the way for future gains.
Market Impact
A drop below $100,000 could significantly impact market sentiment, leading to further sell-offs and increasing downward pressure. However, if stability is maintained above the support levels, a bullish recovery could ensue, potentially boosting other asset classes. Market participants should closely monitor these critical price levels to adjust their strategies accordingly.Investment Advice
For investors, identifying the right entry point is crucial. Consider entering around the support level of $103,000 to $105,000. Additionally, if you wish to capitalize on the volatility, you can register through the Binance registration link or simply enter the referral code YAOQING88888 to enjoy a 20% fee rebate and more perks.By registering, you will receive a coupon worth up to $100 and a chance to share in a prize pool of $450,000!