- Bitcoin pulled back from $124K to near $112K, testing key support.
- The drop below the 50-day EMA at $114,900 signals bearish pressure.
- Demand is weakening, with apparent demand falling from 174K BTC to 59K.
- ETF inflows and institutional buying are slowing, hinting at possible consolidation.
Bitcoin (BTC) has seen a sharp pullback after hitting a new all-time high above $124,000. Following this peak, the cryptocurrency started a downward trend, recently testing a low around $112,000. The sudden drop has left traders cautious, questioning whether the bullish momentum can hold.
Bitcoin Eyes Rebound as Buyers Defend $111,880 Support
Market watcher Captain Faibik noted that BTC’s rising wedge pattern has already broken down, signaling a shift toward bearish pressure.
On the technical side, the daily candle closed below the 50-day exponential moving average (EMA50) at $114,900, a key level that often indicates short-term trend strength.
Recently, BTC traded around a key support line at $111,880. Unless buyers are unable to sustain this level, the next stop might be around $108,000. BTC is able to hold above $112,000, a retest of the EMA50 around $114,900 remains on the table.
Also Read: Bitcoin Dips Below $115,000 After Explosive Surge Beyond $124,000 High
Slowing Demand Signals Potential Consolidation
Data from CryptoQuant shows that Bitcoin demand is slowing. Apparent demand has fallen from 174,000 BTC in July to just 59,000 today.
Institutional buying is also decreasing, as ETF inflows dropped to a four-month low and Strategy reduced its buying pace. It looks as though this weaker demand could lead to Bitcoin experiencing consolidation before its next big move.
Critical Support at $111,880 Holds the Key
The $111,880 support level is critical. A drop below could lead to further losses, while holding above it may trigger a short-term rebound toward $114,900. For now, the market remains in a delicate balance between bullish recovery and bearish pressure.
Also Read: Bitcoin Faces $113K Test: Will It Break Through or Fall into a Steep Decline?
