- Bitcoin declined 1.55%, yet market activity expanded 6.99%, pushing 24-hour turnover to $71.9 billion.
- A 5.08% weekly decline signals continued bearish pressure, with weak technical indicators.
- Failure to hold the critical support at $111,880 could push Bitcoin towards $108K or lower.
Bitcoin (BTC) is currently trading at $113,563, a drop of 1.55% in the past 24 hours. However, its trading volume has increased by 6.99% to $71.9 billion. Despite the decrease in prices, the market continued to be active, as evidenced by the rising trading volume.
Source: CoinMarketCap
In the past week, BTC recorded a loss of 5.08, indicating that the market remained unfavorable for bulls. This increased trading volume implies increased trading in the market, but it is not a positive indicator of the market sentiment.
BTC Tests Critical Support After Wedge Breakdown
Crypto analyst Captain Faibik highlighted that Bitcoin’s rising wedge pattern has broken down. The 50-day Exponential Moving Average (EMA50) closed at $114.9K, which was below the daily candle.
Bitcoin is currently approaching a supporting position of $111,880. Failing to maintain this level, the price might decline to $108K. But as long as BTC is above $112K, it is possible that the EMA50 might be retested.
Source: X
Moreover, another analyst, Umair Crypto, mentioned that Bitcoin is also weak on larger time frames, and especially the daily chart. BTC has recently fallen under the 50-Simple Moving Average (SMA), and it is usually an indication of liquidation events.
The current drop is not significant enough to validate a liquidation drop, but it is concerning. The inability to bounce back above the 50-SMA might induce selling pressures, causing Bitcoin to drop into the $100K range.
Source: X
Also Read: Toncoin on the Edge: Will $3.89 Ignite a Surge or $2.80 Trigger a Crash?
BTC Struggles as RSI and MACD Show Weakness
The Relative Strength Index (RSI) is 53.60, indicating a neutral-to-slightly-bearish tone. However, the RSI is currently in a downward trend, suggesting that the selling momentum is increasing. The Moving Average Convergence Divergence (MACD) is at -643, and the MACD line is below the crossing signal line. This indicates that the negative momentum remains imminent.
Source: TradingView
Open Interest Declines as Trading Volume Increases
According to CoinGlass data, the trading volume has increased by 5.75% to $82.83 billion. However, the open interest has decreased by 0.27% and is currently trading at $80.85 billion. The BTC OI-weighted funding rate sits at 0.0084, which is weak and indicates no bullish activity in the market.
Source: CoinGlass
Bitcoin is still under bearish pressure. The market is focusing on critical support levels, particularly at $111,880. A failure at these levels could send Bitcoin on another decline. The market is unpredictable, leading to confusion about the next steps investors should take regarding Bitcoin.
Also Read: Bullish IPO Raises $1.15 Billion Using Stablecoins, a First for U.S. Markets
