Bitcoin Price Drops After Technical Breakdown, Risks Extend Toward $108K

Bitcoin price was around $114,112 at press time, up 0.69% in the last 24 hours. The token lost 4.66% over the past week and 4.70% in the past month.

Traders said the shift marked a change in momentum after weeks of sideways action. A failed attempt to hold above the 50-day simple moving average added to the weakness.

That indicator stood near $116,000 at press time, acting as resistance. The rejection came after BTC touched an all-time high near $124,457 earlier this month, when a bearish engulfing candle signaled the end of a four-week rally.

The move shifted the short-term outlook from continuation to corrective pullback.

Bitcoin Price Faced Pressure from Bearish Chart Structures

On the daily chart, analysts noted a developing head-and-shoulders structure. The neckline rested close to $112,000.

A sustained break below that level could trigger downside targets near $108,000. Extended weakness could send the token toward $105,000.

Candlestick patterns also pointed to selling pressure. Several consecutive bearish closes resembled the early stages of a three-crows formation, a signal of sustained downside momentum.

This added to the concern that the short-term structure had weakened. Technical indicators supported the bearish case.

The moving average convergence divergence (MACD) was in negative territory at press time, showing a shift in momentum.

The relative strength index (RSI) stood near 41 at the same time, indicating the market was not oversold. Analysts said this left room for further decline without a technical bounce.

Despite the weakness, the broader chart still showed higher lows since June. Small-bodied candles around $113,000 to $114,000 appeared as dojis and spinning tops.

Those signals suggested indecision, not capitulation, and showed some buyers remained active in the range.

Bitcoin Price Still Showed Potential for Recovery

Even with pressure in the near term, the medium-term picture remained intact. Analysts said a recovery above $116,000 could open the way toward $121,000.

A stronger push through $124,000 could clear resistance and allow retests of $127,000 or higher.

Trading scenarios reflected these levels. A bullish case required a clear break above $116,000, confirmed by a strong daily candle.

That would improve the chance of testing $121,000 and possibly $124,000.

A bearish case focused on the neckline near $112,000. A break below that level could send BTC price toward $108,000.

Institutional accumulation also provided a degree of support. Firms such as Metaplanet and Strategy had added BTC during recent pullbacks.

Market observers said this activity showed continued confidence in the asset despite the short-term correction.

The structure of higher lows since mid-year reinforced that longer-term momentum had not been fully lost.

Analysts said this suggested the market was in a consolidation phase rather than a reversal of the broader uptrend.

Outlook For Bitcoin Price in the Weeks Ahead

The next technical levels remained clear. Holding the neckline around $112,000 was critical to avoid further decline.

Failure at that point risked sending the token closer to $100,000. Conversely, a successful rebound above $124,000 could reopen the path toward $130,000.

Market structure at press time favored caution, with indicators showing momentum still leaned bearish. Yet higher lows since June kept the medium-term trend constructive.

For now, the outlook depended on whether BTC stabilized above its neckline support or slipped toward lower targets.