Bitcoin Bulls on Edge: Is Another Sharp Decline Coming?
Bitcoin (BTC) is facing challenges as it struggles to break above $112,000, creating a complex market sentiment. Despite a recent recovery wave from $110,100, technical indicators suggest potential downside risks.
Key Points
- Bitcoin could face a fresh decline if it falls below $110,800.
- Current support is at $111,000, while key resistance is at $112,300.
- Technical indicators show waning bullish momentum for Bitcoin.
- Failure to breach $112,300 may lead to a drop towards $108,800.
- Register on Binance to enjoy a 20% trading fee rebate, ideal for investors looking to capitalize on market opportunities.
In-Depth Analysis
Bitcoin's price encountered strong selling pressure near $113,200, subsequently retracting to $110,820, indicating market turbulence. Currently, BTC is trading below $111,500, losing support from the 100-hour simple moving average. If the price slides below $110,800, it may trigger a larger decline, potentially testing the $108,800 support area.From a technical perspective, the hourly chart for BTC/USD shows a bullish trend line forming with support at around $111,000. However, investors should be cautious as the price remains below the critical $112,300 level, which may lead to further weakness. The Relative Strength Index (RSI) is already below 50, indicating increasing selling pressure.