Analysis of Bitcoin Price: Potential Impact of Key Support Breach on Future BTC Declines
In the cryptocurrency market, Bitcoin is currently experiencing a correction, with the digital asset trading at around the $110,000 mark. This correction follows a break down from a rising channel on the daily chart, as the Relative Strength Index (RSI) stands at 43, confirming bearish momentum is in play.
On the 4-hour chart, Bitcoin is correcting inside a descending channel after reaching the $124K peak. The market structure is showing a gradual shift from a strong uptrend to a series of lower highs and lower lows, indicating a controlled pullback rather than a sharp breakdown.
The $110K level is a critical area as it aligns with the 100-day moving average and the recent rejection from this level signals weakened bullish momentum. If Bitcoin fails to climb back above $110K, the next key support lies near the $104K fair value gap. If the price gets rejected at $110K, it may indicate that the market is not ready for another attempt at $117K.
The adjusted SOPR (aSOPR) chart suggests that the market remains vulnerable to further corrective pressure. Each time aSOPR gets rejected near or slightly above 1, it shows that rallies are being sold into rather than extended with new demand. This indicates that the market appears to be in a cooling-off period where holders are less willing to hold through volatility and are instead realizing profits.
However, a successful reclaim of the $110K level could allow for a rebound toward the $117K high. Momentum indicators on the 4-hour chart suggest buyers need renewed strength to push higher. The RSI has climbed back above 50, now sitting at 56, showing a short-term improvement in bullish momentum.
If buyers manage to break out of the descending channel and reclaim $110K, it could confirm a structural shift back toward bullish conditions. The coming days will be decisive in showing whether Bitcoin stabilizes or extends its correction further on both the daily and 4-hour charts.
It's important to note that the search results do not provide information about which department or company created the Adjusted SOPR chart mentioned in this article. The aSOPR historically shows that sustained readings above 1 signal that investors are selling at a profit during bullish phases, while persistent drops below 1 point to capitulation or losses being realized.
In conclusion, the current correction in Bitcoin's price is a sign of a controlled pullback rather than a sharp breakdown. The $110K level is a critical area to watch, as it could either signal a rebound or further correction. The coming days will provide valuable insights into the market's direction.
