Bitcoin (BTC) has recently witnessed a drop below the $112K support level and continues to operate within an expanding megaphone. Analysts are closely monitoring price movements, which may indicate market recovery or further decline.
Expanding Megaphone
Bitcoin continues to form a megaphone, showing widening highs and lows that reflect ongoing market volatility. This pattern indicates active testing of boundaries by both buyers and sellers. Price swings within the structure suggest that market control is still undecided. This broadening formation allows for extended periods of sideways or downward movement without breaking the overall pattern.
Breach of $112K Support
The recent drop below $112K marks a shift in BTC's immediate market trend. Colin Talks Crypto noted on X that the bullish case is unlikely until the price reclaims this level. Horizontal supports often reflect consensus among traders, making them more influential than trend lines. Falling below $112K may result in cautious market behavior despite the megaphone pattern remaining intact. Without reclaiming $112K, the structure may lean toward distribution rather than accumulation, potentially limiting upward movement.
Contours of Future Movement and the 107K Level
Bitcoin is approaching the lower boundary of the megaphone near $107K. A decisive break below this boundary would likely confirm a bearish continuation and push prices toward $105K–$100K. BTC will be able to move down within the megaphone without necessarily violating the pattern. Nevertheless, trading under $112K maintains the short-term perspective as a cautious one till the moment of the bullish momentum. To get the bullish scenario on its feet again, BTC would have to close above $112K on a daily basis, preferably targeting $118K-120K.
As of writing, Bitcoin was at $108,507, showing a 1.35% decline in 24 hours and a 6.22% drop over the past week. The 24-hour trading volume is $48,078,042,612, reflecting active market participation.
