Evaluation of Bitcoin's Price: BTC Examines Significant Support amid Potential Further Decline

Bitcoin investors are apprehensive about a possible substantial price crash, despite the presence of key market elements that could support and drive the asset higher. Bitcoin has been on an upward trend, reaching an all-time high over $124K. However, it has experienced a strong downtrend, moving towards the critical support zone of $110K-$112K, also aligning with the 100-day moving average.

Market response to this level could dictate the broader trend, potentially triggering a deeper correction or a bullish rebound. The $112K support level is significant, with a breakdown below this shifting the market into bearish territory. Meanwhile, the on-chain analysis shows a divergence between price and network activity, indicating fewer unique participants are driving the price action, potentially making the market more susceptible to corrections.