Bitcoin’s retreat to around $112,000 has sparked a wave of analysis among traders, with some eyeing the correction as the final shakeout before a potential move higher.
The drop came after BTC failed to pierce through strong resistance near recent highs, triggering a wave of liquidations across the market.
Technical analyst Ali Martinez suggested the pullback was expected and may be setting up a bullish reversal.
According to his chart, Bitcoin appears to be forming a classic inverse head-and-shoulders pattern, with the current retracement marking the right shoulder. If the structure plays out, Martinez sees a potential breakout toward $130,000.
Michaël van de Poppe, another well-followed trader, framed the decline as part of a broader liquidity sweep that cleared overleveraged positions.
He noted that such flushes are often precursors to significant rallies, particularly for altcoins, and hinted that this could be a major opportunity for accumulation ahead of what he described as an “up-only season.”
“The markets were overdue for a reset,” he added, describing the correction as a necessary step to cool off excessive excitement and open the door for stronger upside momentum. His analysis points to the $110,000–$113,000 zone as a key level where buyers may begin stepping back in.
The daily Relative Strength Index (RSI) currently sits around mid-levels, neither overbought nor oversold, suggesting room for volatility in either direction. However, with liquidity flushed and sentiment temporarily dampened, many traders see the current environment as favorable for long-term positioning.
Whether Bitcoin holds its footing at $112,000 or dips slightly lower, analysts agree that the next few sessions will be critical in determining if the market is ready to attempt another breakout or remain in a consolidation phase.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/bitcoin-price-dips-to-112k-as-analysts-spot-accumulation-zone/