- Bitcoin risks dropping to $110K if $117K support breaks, with momentum weakening near recent highs.
- Market sentiment remains cautious, as traders await confirmation of a bullish breakout or deeper correction.
- Volatility is expected to persist, with $117K as the key pivot for Bitcoin’s next major move.
Bitcoin (BTC) is still under close observation by investors and traders as it tries to maintain its bullish formation, creating higher highs (HH) and higher lows (HL). Though such technical formation normally indicates strength and rising momentum, the present market condition has created uncertainty among analysts who think the breakdown is around the corner.
Currently, bitcoin is trading at $117,419, down 1.28% for the preceding 24 hours. The largest cryptocurrency has an enormous 24-hour volume of $94.04 billion and a market capitalisation of $2.34 trillion. Even as BTC has robust fundamentals and market dominance.
The cryptocurrency is now put to the test for its biggest support of around the $117,000 mark. It could invalidate its present bullish formation if there is a decisive break below, and the way could be paved for an even larger correction, potentially reentering the area of $110,000.
Technical analysts have mentioned that even as BTC continues to form higher lows and remain above prominent trend lines, the lack of momentum off of recent highs is concerning. This weakness around the region of resistance is suggestive of potential buyer exhaustion.
Also Read | Bitcoin Risks Drop to $111K If $117K Support Breaks Amid Miner Selling Pressure
Bitcoin Faces Pressure With Support Level Weakening
Following the cautious tone, the popularly followed crypto analyst Crypto Patel also shared a bearish view on X (formerly Twitter). Patel noted that although Bitcoin is still technically within a bullish setup, the recent price action “feels different.” He stated:
“Bitcoin does not look strong here. Sure, still building HH and HL, but this feels different. This structure is going to break soon, and back down below $110K is what we see within the next few days. Setup is invalidated if there is a 3H close above the ATH.”
That statement has brought about commentary throughout the crypto market, referencing an imminent divergence between short-term bullish patterns and medium-term sentiment throughout the market.
Currently, everyone is focused on the price of Bitcoin around the $117K mark. A reversal from there could rekindle purchase interest and maintain the uptrend. Alternatively, a breakdown could boost selling pressure, sending prices down and potentially nullifying the recent formation.
Until there is a definitive breakout through its all-time high or a confirmed breakdown below $117K, the price action of Bitcoin is set to remain volatile. Market participants are cautioned to watch key levels and remain vigilant for any change of momentum that would determine the world’s largest cryptocurrency’s next significant movement.
Also Read | Bitcoin Breaks $121,000 Barrier, Eyes $132,000 Rally Ahead
