Is Bitcoin on the verge of collapse or preparing for a rise? The support level of $116,000 will determine everything
Bitcoin seems to be on the verge of collapse after reaching its all-time high of $123,000 at the beginning of the month. This sudden reversal surprised the market, as the altcoin market bore most of the losses. Now, as the price of Bitcoin reaches a critical level, the question of whether this is the start of a downward trend or whether the price will recover becomes more urgent.
Downward Trend of Bitcoin After Reaching a New Record Level
After the pullback to $117,000, financial analyst TehThomas published an analysis showing the current price trend of Bitcoin and its future direction. So far, the analyst explains that Bitcoin is still trading in a clear direction after being rejected from the resistance zone above $120,000 several times. However, there remains a lot of resistance from lower support levels, which could be a support point for the price.
Recovery from Low Levels
If the recovery to low levels is completed, the price of Bitcoin will not drop sharply, and in fact, this may be the move that leads to activating the next upward wave. The analyst explains that buyers will need to return to this level, with strong support at $116,000. This accumulation during the consolidation process will have a bullish character.
Critical Support Level
The analyst indicates that the support level of $116,000 is the critical level that will determine the future price direction. If this level is not maintained, the price may drop sharply.
Summary
Bitcoin is still trapped in a clear range, and until a breakout occurs, the edges of this range will provide the best trading opportunities.
