Bitcoin threatens to fall to $114,000: Bullish traders push BTC towards a local bottom

Bitcoin threatens to fall to $114,000: Bullish traders push BTC towards a local bottom

Bitcoin threatens another decline after falling more than 4% from its peak. New analysis shows a possible local bottom near $114,000 as liquidity in the markets gradually recovers, increasing short-term volatility.

Highlights:

- After a significant decline, the price of Bitcoin is now consolidating around $122,000. Traders speculate that volatility will return in the short term.

- Open interest (OI) in derivatives is growing rapidly, supporting signs of a short-term recovery, but also increasing the chance of rapid swings.

- Price signals point to a possible local bottom near $114,000, near the 50-day simple moving average (SMA). This means that if the sell-off continues, Bitcoin could lean on this level as a strong support point.

- Alternative views suggest that support is also found just below this zone, around $117,000, where former buyers have been actively entering. Some analysts warn that there is relatively little defensive coverage between $121,000-120,000, and the price could fall quickly if there is further selling pressure.

- A more secure bounce is sought around $114,000, but some sources say that a strong bounce would be best entered near this level, given historical levels and the current market.

- According to analyst Michaël van de Poppe, another buying zone has also extended to ~$118,000; however, he noted that breaking past all-time highs often triggers profit-taking, which could push the price lower.

Conclusion:

Bitcoin is entering a period of uncertainty, with key blind spots and increasing liquidity creating an environment for rapid and often unexpected moves. If support around $114,000 is confirmed, the market could stabilize and prepare for the next move, otherwise there is a risk of a rapid decline towards lower levels.

*This is not an investment recommendation.

The Coingarage Team