$BTC

Bitcoin's 24-Hour Decline: A Natural Cooling-Off Phase?

Bitcoin's recent dip aligns with post-ATH profit-taking after reaching $123,091.61 on July 18. Key factors contributing to the decline include:

- Overbought conditions: The 7-day RSI (74.2) triggered sell-offs, and $150.37M in BTC liquidations amplified downward pressure.

- Institutional pause: Regulatory uncertainty led Basel Medical to halt a $1B BTC acquisition plan.

- Market rotation : Bitcoin's dominance fell 3.35% to 60.8% as Ethereum surged 5.56%, driven by $727M in ETH ETF inflows.

▪️Technical Analysis:

- Key levels: BTC tested the 23.6% Fibonacci retracement ($117,237) and broke below its 7-day SMA ($118,531).

- MACD divergence: The histogram (+742.15) remains bullish, but narrowing momentum suggests consolidation risks.

▪️Price Predictions and Long Position Support Entry Points:

- Support level: $117,000

- Potential bounce: If BTC holds above $117,000, it could bounce back to $120,000-$122,000.

- Long-term outlook: Bitcoin's dominance may regain momentum as macro uncertainty persists, but Ethereum's recent surge could sustain if ETF inflows continue.

▪️Directional Cues:

- Watch the $117K support level and ETH/BTC dominance ratio for insights into Bitcoin's next move.

- Monitor Ethereum's momentum and BTC's ability to regain dominance as market trends evolve.

This analysis provides a concise summary of the situation, highlighting key factors and potential price movements. #Write2Earn #BinanceSquareTalks