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Bitcoin Price Faces Bearish Pressure, Could Drop Below $112K: Expert

2 hours ago
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TLDR:

  • Bitcoin price broke below $115K after rejecting $122K resistance before reclaiming $116K, signaling potential further correction.
  • On-chain data shows liquidity gap between $112K and $108K, heightening downside risk for BTC.
  • Accumulation Trend Score drops to 0.20, suggesting holders are redistributing rather than accumulating.
  • Weekly consolidation near $115K keeps long-term bullish trend intact above $109K support zone.

Bitcoin has entered a corrective phase, briefly sliding below $115,000 before reclaiming $116k after failing to hold above the $122,000 resistance level. Analysts are highlighting the potential for deeper pullbacks as momentum leans bearish. 

Traders are closely monitoring the $112,000 support, which may determine the next move. On-chain data indicates a liquidity gap between $112,000 and $108,000, raising concerns about a sharp drop if support fails. 

Despite short-term weakness, some experts maintain that Bitcoin’s long-term bullish trend remains intact.

Bitcoin Price Corrects Below $115K: What Traders Are Watching

Market analyst Ali Charts notes that Bitcoin recently rejected the $122,000 level, triggering a deviation that signals potential weakness. He maps the current range between $122,000 at the top and $112,000 at the bottom. 

Ali warns that $112,000 is crucial support; breaking it could lead to a rapid drop toward $108,000. According to him, the Accumulation Trend Score has fallen to 0.20, indicating holders may be redistributing Bitcoin instead of adding to positions.

Ali also provides real-time access to his trades, showing exact entry and exit points and reasoning behind each move. Traders are using this data to gauge market sentiment and position themselves ahead of potential swings. 

The current consolidation suggests Bitcoin may continue bouncing inside this $10,000 range before a decisive move occurs. Short-term traders are closely watching momentum indicators and liquidity gaps to manage risk effectively.

Analysts See Consolidation as Long-Term Bull Trend Persists

Nilesh Rohilla offers a broader perspective, noting that Bitcoin failed to hold above $120,000 and is consolidating around $115,000. He identifies immediate support between $109,000 and $112,000, with a strong zone at $98,000. 

Resistance remains at the all-time high zone near $124,000. Rohilla emphasizes that a weekly close above $120,000 would signal continuation toward $140,000–$150,000.

Candlestick patterns add nuance to the outlook. While shooting stars typically indicate reversal, in strong bull markets they often fail, as seen in January 2024. 

Indicators like MACD remain bullish, with the histogram turning green, and RSI shows healthy consolidation at 62.64. Rohilla concludes that Bitcoin is in the early phase of Wave (5), historically explosive, with a target zone of $160,000–$200,000 over the next 4–6 months. He suggests panic dips could present buying opportunities.

Market Data Highlights Bitcoin Price Movement

According to CoinGecko, Bitcoin is trading at $116,483, down 1.22% in the past 24 hours and 2.99% over the last seven days. Trading volume remains robust at $42.18 billion, reflecting active participation despite the pullback. 

Analysts are tracking $112,000 as a key level that could either support a rebound or trigger a rapid decline toward $108,000. The market is observing technical levels and on-chain trends to anticipate possible price swings.

The coming days will test Bitcoin’s short-term resilience and provide insights into whether consolidation continues or a deeper correction emerges. Traders and enthusiasts are advised to monitor support levels while considering long-term bullish scenarios and immediate downside risks.

BTC price on CoinGecko

The post Bitcoin Price Faces Bearish Pressure, Could Drop Below $112K: Expert appeared first on Blockonomi.

Source: https://blockonomi.com/bitcoin-price-faces-bearish-pressure-could-drop-below-112k-expert/