Bitcoin (BTC) has experienced a significant downturn since September 18, culminating in a flash crash that briefly sent its price below the critical threshold of $112,000 today. Although the price has bounced back slightly, the decline raises concerns about the stability and sustainability of the upward trend that began at the start of September.
Trading at a vital support zone now, the future trajectory of Bitcoin could hinge on whether it can maintain this level or not. Analysts are closely monitoring the charts, as the trend established in September could either continue or reverse based on upcoming price movements.
Since reaching heights of $117,900 on September 18, Bitcoin’s price has dropped over 4%. This rejection at the important resistance area between $117,000 and $118,000 is pivotal, as it suggests that the cryptocurrency may be in a corrective phase rather than experiencing a robust upward momentum. The analysis indicates that the Bitcoin price has been navigating within an ascending parallel channel since the lows observed at the beginning of September, a pattern typically indicative of corrective price movements.
The price action at the $112,000 horizontal support area remains critical. Current momentum indicators are sending mixed signals; the Relative Strength Index (RSI) has fallen below the neutral mark of 50, and the Moving Average Convergence/Divergence (MACD) has executed a bearish crossover. These signs lean slightly towards a bearish outlook for Bitcoin, but the price holding at support could allow for a potential bounce back.
Looking ahead, Bitcoin’s path can unfold in two main scenarios: a bearish trajectory leading to further declines or a bullish rebound. The bearish perspective predicts that the downward trend could persist, pushing Bitcoin lower to about $100,600 if the ongoing ABC correction pattern plays out as anticipated.
Conversely, a bullish scenario suggests that Bitcoin may have completed an upward five-wave structure since September 1 and is now concluding an ABC correction. In such a case, it becomes crucial for Bitcoin to maintain price levels above $112,650 to bolster the possibility of a rebound.
In sum, the recent rejection at resistance and the breakdown from the ascending channel have placed pressure on Bitcoin’s bullish sentiment. As it stands at a critical support level, the next few days will be pivotal—determining whether the cryptocurrency tumbles further towards $100,000 or begins a recovery toward more favorable pricing levels. Investors and market watchers remain alert for signs that could indicate Bitcoin’s next major move.
