Bitcoin has recently experienced a dip in price, falling below $109,000, its lowest level since July 9. This has sparked speculation about whether the market is heading towards a deeper correction or simply taking a breather after a period of significant gains. Another interesting development is the decline in Bitcoin dominance, which often signals a potential outperformance of altcoins.
Bitcoin Price Prediction
Analyst Josh has noted that Bitcoin has been struggling to make significant gains in recent weeks, indicating a weakening buying power. Currently hovering just below the $109,000 support level, the next major support zones are around $106,000 to $105,000. These levels have proven to be resilient during previous corrections and will be closely monitored this time around.
In terms of resistance, the first hurdle is at $112,000. If buyers manage to surpass this level, the next targets are at $113,400 and $114,800. A clear breakthrough above $114,800 could establish it as a support level and pave the way for a potential move towards $117,000. However, until then, rallies may continue to be limited by selling pressure.
The MACD histogram for Bitcoin remains in the red, indicating ongoing bearish sentiment. Price action has been characterized by volatility, with neither bulls nor bears fully seizing control.
Bigger Picture: A Pause, Not a Collapse
Despite the short-term weakness, the analyst emphasizes that Bitcoin is still operating within a broader bull market cycle. The current pullback is viewed as a healthy correction rather than the beginning of a major collapse. As long as Bitcoin maintains support around $105,000, the overall uptrend structure remains intact.
Analysis of liquidation data reveals liquidity clusters in the range of $114,000 to $116,000. This suggests that Bitcoin may gravitate towards this zone before encountering renewed selling pressure. Some intraday charts even show signs of a bullish divergence, supporting the possibility of a brief rebound.
In conclusion, while Bitcoin may be experiencing a period of consolidation and volatility, the overall outlook remains positive within the context of a larger bullish trend. Traders and investors should closely monitor key support and resistance levels to gauge the trajectory of Bitcoin’s price movements in the coming days.