Significant Dip in Bitcoin Value: Could Worsen as BTC Experiences 3% Daily Decrease?
In the world of cryptocurrency, Bitcoin (BTC) is currently experiencing a significant moment as it hovers around the $114,000 mark. This level, a critical battleground between buyers and sellers, aligns with the 0.5 Fibonacci retracement level and the lower boundary of a long-standing price channel.
The recent drop has taken Bitcoin back toward the lower end of its rising channel, a structure it has maintained since late April. Despite this retreat from July highs near $123,800, analysts forecast relatively stable to modestly bullish mid-term price action for Bitcoin through late 2025.
The 4-hour chart indicates that the selling pressure has been increasing, driving Bitcoin's price lower. A confirmed break below the $114K level could lead to a long-squeeze scenario, pushing the price lower. This drop indicates a rise in distribution and selling interest.
If Bitcoin breaches the $114K level, it could trigger a chain reaction of stop-outs and liquidations, driving sharp downside momentum. The reaction at the $111K zone, which coincides with the Supertrend support, is expected to play a key role in shaping Bitcoin's mid-term trajectory.
On the other hand, a sustained break above resistance with increased volume could signal further bullish momentum. Resistance clusters near $115,200 to $116,500, defined by the EMA cluster zone, Fibonacci resistance, and prior rejection, may define the near-term upside boundaries.
As the price hovers near the $114K threshold, the probability of a downward breakout increases. However, it's important to note that the 4-hour chart shows the ongoing selling pressure on Bitcoin.
Monitoring technical indicators like moving averages, Supertrend, Fibonacci levels, and volume patterns, along with sentiment metrics, will be key for tracking Bitcoin’s trajectory through 2025. The Binance BTC/USDT liquidation heatmap shows a tense standoff within the current market structure, highlighting the importance of this support level.
Key short-to-mid-term factors influencing BTC include investor sentiment, ETF inflows, declining exchange balances, and market momentum shifting bullish. However, volatility remains a consideration. With these factors in mind, the mid-term outlook for Bitcoin remains nuanced, with potential for both recovery and correction.
- The ongoing selling pressure, as shown on the 4-hour chart, could potentially lead to a break below the $114K level in Bitcoin, triggering a chain reaction of stop-outs and liquidations, driving sharp downside momentum.
- In the world of crypto trading, technical analysis plays a crucial role in forecasting Bitcoin's mid-term price action, with key indicators like moving averages, Supertrend, Fibonacci levels, and volume patterns being closely monitored.
- Despite the potential for a downward breakout, analysts forecast relatively stable to modestly bullish mid-term price action for Bitcoin through late 2025, with significant factors such as investor sentiment, ETF inflows, declining exchange balances, and market momentum shifting bullish influencing its trajectory.
