This week, Bitcoin's price reached a new all-time high of $123,000 before retracing back to the $118,000 zone. Analysts are discussing whether this is just a cooldown or the beginning of a larger pullback.
Chart Analysis: Possible $110K Level
Current 4-hour chart shows some important technical signals:
* Support at $118,000 has been broken, evident by the red candle drop below the orange horizontal zone and both moving averages. * The next major support is marked at $116,000, aligning with the previous consolidation zone earlier this month.
If $116,000 fails to hold, levels at $110,470 and $109,000 come into play.
Will the Situation Correct?
While a drop to $110,000 is definitely possible, it doesn’t necessarily signal the end of the bull run. Key points include:
* The macro trend remains bullish, with BTC trading well above its 21 EMA on the daily. * The last correction brought BTC down only ~7% before buyers stepped in, a standard move after a parabolic rise.
As long as Bitcoin remains above $109K–$110K, the structure stays intact for another push higher.
Bitcoin Price Prediction: What to Watch Next?
If Bitcoin reclaims the $118K zone and prints a higher low, bulls might regain control and test $123K again. However, if sellers dominate and push BTC below $116K, prepare for a deeper dip toward $110K, where bargain hunters might step back in.
Watch for RSI recovery, price action around $116K, and potential bullish divergence. This is a key zone that could dictate the next big move.
The Bitcoin price situation remains under observation. The balance of power in the market could shift depending on price behavior around key support levels. Investors and traders should proceed cautiously and monitor the charts closely.
