- Bitcoin is currently hovering around the $112.4K level.
- The market has recorded $128.77M in BTC liquidations.
The crypto tokens are in an uncertain condition after entering the fear zone in the market. Both green and red flags are waving modestly across the charts. Notably, Bitcoin, the largest asset, is trapped in the consolidation phase, facing rejections after multiple recovery attempts. Will the BTC price reclaim the $120K mark soon?
With the formation of a series of lows and highs, in the early hours, BTC traded at a high of $113,622 and later fell down to a low at around $110,029. At press time, Bitcoin has lost over 0.61%, trading in the $112,416 range. Meanwhile, the asset has stepped into the fear zone as the Fear and Greed Index holds at 34.
It is also worth noting that BTC’s daily trading volume has increased by over 23.54%, reaching the $88.9 billion mark. The Coinglass data mentioned that the market has witnessed a liquidation event of $128.77 million worth of Bitcoin during the last 24 hours.
An analyst chart shows that Bitcoin needs to break above $119K to maintain its bullish trend. If it fails to do so, the Pricing Bands indicate a potential correction down to $96,530. Essentially, $119K acts as a key resistance, while $96.5K is its support zone in case of a pullback.
Can Bitcoin Recover, or is the Downtrend Here to Stay?
Bitcoin’s four-hour price chart reports a bearish takeover, with the formation of red candlesticks. The price could fall and find its key support at the $112,409 range. Further losses may put additional downside pressure, triggering the death cross to take place, and sending the price below the $112.4K mark.
On the upside, assuming the asset reverses the red chart to green, it is a bullish signal. A bounce to the nearby $112,423 resistance could nullify the downtrend and bring in the bullish wave. An extended gain might push the golden cross out, and the bulls would break the price zone above $112,430 or even higher.
The technical analysis of Bitcoin exhibits that the Moving Average Convergence Divergence (MACD) line and the signal line have crossed below the zero line. It indicates bearish momentum, giving a sign that the market is weak. In addition, the Chaikin Money Flow (CMF) indicator at 0.09 suggests a slightly bullish flow of money into the asset. The value is positive but modest; the buying pressure is mild within the BTC market, not very strong.
Moreover, the daily Relative Strength Index (RSI) value of BTC settled at 42.29, signalling its neutral to slightly bearish zone, with no extreme conditions. With this value, the market is leaning toward selling, but not yet oversold. Bitcoin’s Bull Bear Power (BBP) reading of -1,728.54 implies a strong bearish dominance in the market. The sellers are clearly in control, and the asset is under significant downward pressure.
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