Bitcoin is currently experiencing a period of consolidation, with the price moving sideways without any significant breakout or breakdown. After a slight bounce from last week’s low, traders are left wondering whether that was the bottom or if more downside is on the horizon.
In the past week, Bitcoin has been trading within a narrow range, showing indecision in the market. The price has been fluctuating up and down, lacking a clear direction. Some analysts believed that the recent dip could have marked the final low, but the subsequent bounce was not strong enough to confirm a trend reversal.
One key level to watch is $120,200. Bitcoin needs to break above this level to demonstrate real strength. However, the recent rally from the low has been weak, indicating that a new upward trend has not yet been established.
Bitcoin dominance has also been a point of interest, bouncing from a support zone around 60.2 percent and now facing resistance. An increase in dominance could signal that Bitcoin is gaining strength relative to altcoins, typically seen during uncertain market conditions when traders move their funds back into BTC.
If Bitcoin were to create another local low below last week’s dip, the likelihood of a deeper correction would increase. The $113,800 support level is being closely monitored by analysts. Falling below this level may prompt traders to reassess the current bullish outlook.
Currently, there is still no clear signal in the market. Bitcoin remains trapped in a range with conflicting signs of strength and weakness. The recent upward movement was feeble and short-lived, suggesting that bulls do not have full control. A strong bounce from a new low could boost confidence, but until then, the market continues to trade sideways.
As Bitcoin navigates this quiet phase, traders are advised to exercise caution and closely monitor key levels for potential breakout or breakdown signals.