Bitcoin continues to hover around the $119,000 mark, supported by a decrease in leverage that is contributing to market stability after recent price fluctuations.
Declining Leverage Supports Market Stability
Recent analysis highlighted that the estimated leverage ratio across major platforms has eased from early August levels above 0.27 to around 0.25. This decline indicates that traders have become less aggressive in their positions, helping to prevent sharp sell-offs that can follow high-leverage rallies.
Technical Analysis of Bitcoin
On the 4-hour chart, Bitcoin is hovering just below the midline of its Bollinger Bands, with the upper band at around $119,900 acting as strong resistance. The relative strength index (RSI) at 55 does not indicate market overheating, while the stochastic %K at 68.7 suggests steady but not extreme momentum.
Price Movement Prospects for Bitcoin
If leverage remains in check, a breakout above $119,900 could lead to a push toward $123,000. However, if rejection occurs at this level, the price may decline to $117,700 (20-day EMA) or $114,900 (50-day EMA).
The current state of the Bitcoin market indicates relative stability due to decreasing leverage. Monitoring price dynamics will allow traders to assess further prospects for the cryptocurrency.
