Analysis of the current cryptocurrency market shows that Bitcoin, despite a modest uptick in market capitalization, may face a period of sustained weakness.
Key Support Levels
Glassnode data highlights critical support levels at $104,520, $97,050, and $59,720, suggesting a deeper correction could follow if Bitcoin fails to hold above $110,000. Market strategist Ali noted these levels as key points, reflecting clusters of realized price distributions where buyers historically stepped in.
On-Chain Metrics and Caution
The latest ‘Supply in Profit’ data indicates a decline in the number of coins held at a profit, a signal that has previously coincided with the beginning of downtrend phases. This shift raises concerns that Bitcoin could be transitioning into a bearish cycle after its strong rally earlier this year.
Technical Indicators and Forecasts
From a technical standpoint, indicators remain divided. The Relative Strength Index (RSI) is hovering near 66, suggesting momentum but also warning of near-term overbought conditions. Meanwhile, the MACD has shown repeated fluctuations around the neutral line, underlining the uncertainty in market direction.
With support zones clearly mapped and profit-taking signals flashing, the coming days may prove decisive for Bitcoin’s short-term trajectory. A failure to hold key levels could open the door to a slide toward the mid-$90,000 range, while a bounce above $115,000 might restore confidence in the ongoing bull cycle.
