Bitcoin remains trapped in a descending channel, with the key support at $112,000 increasingly under pressure. A break below this level could pave the way for a sharp plunge to $100,000, causing concern among investors. However, this correction could also present new opportunities...
Bitcoin is currently trading at $110,860, down more than 0.8% over the last 24 hours. With a market capitalization of $2.19 trillion and nearly 19.9 million BTC in circulation, the largest cryptocurrency remains the undisputed market leader. However, the short-term outlook is far from rosy.
On the technical front, Bitcoin remains trapped in a descending channel after failing to maintain its position above $124,450 earlier this month. The pullback has formed a series of lower lows, with the price consolidating around $110,100.
Key levels to watch include:
Momentum indicators are cautious. The RSI sits at 38, indicating that Bitcoin is oversold, but without a bullish divergence for now. The MACD remains negative, reflecting selling pressure.
Bitcoin liquidated shorts up to $112,300 in the evening. Now, it’s likely to target long positions in the coming days if $113,000 isn’t broken.
If the support at $108,695 – $110,000 breaks, it would validate bearish concerns and could accelerate a sharp decline toward $100,000. This psychological level could trigger a wave of panic selling, but would also likely attract institutional buying.
Conversely, if bulls manage to push back above $116,850, where the channel resistance meets the 50-day moving average, it would pave the way for a more substantial rebound, with targets at $120,900 followed by $126,450.
Ultimately, the situation is binary: either Bitcoin holds firm above support and prepares for its next bullish assault, or a clear breakdown sends the price plunging into six figures. With institutional demand still present, a pullback could prove temporary. But if support continues to crack, the market could witness the strongest correction since last June’s rally.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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