Analyst Focus: Bitcoin High Correction, Key Support Level Becomes the Watershed for Bulls and Bears
On August 6, Bitcoin experienced a certain degree of correction after reaching a historical high recently. This has triggered discussions among analysts regarding price support levels and the potential shift in market trends.
CryptoQuant analyst Maartunn noted that after Bitcoin hit its all-time high, long-term holders (LTH) began to take profits, including the sale of 80,000 BTC from "Satoshi era" wallets. However, he remains optimistic about the market's absorption capacity.
Meanwhile, although institutional funds, such as those from companies like Strategy and Metaplanet, have provided some upward momentum for the market, it is still insufficient to maintain Bitcoin's price at the $120,000 level.
Furthermore, data shows that short-term holders (STH) sold over 160,000 Bitcoins at a cumulative loss from mid-July to the end of the month. This relatively prolonged period of loss-making selling, along with increased outflows from Bitcoin-related ETFs, has also put some pressure on the market.
Analysts indicate that Bitcoin is currently trying to find support around the historical high of $112,000. On-chain data also shows strong support within the range of $108,000 to $112,000.
Analysts believe that the current market correction falls within a normal range. However, if Bitcoin falls below $112,000, it may indicate a fundamental shift in market behavior.
At the same time, another analyst from Matrixport, Markus Thielen, is focusing on the critical level of $105,696.
Thielen pointed out that while it is still too early to determine whether Bitcoin will fall back to this level of the 21-week moving average, this position is an important reference for observing market trends.
He believes that as long as Bitcoin's price can maintain above $105,696, the overall market leans bullish; but once it falls below, investors need to be wary of bear market signals.
Despite the correction in Bitcoin over the past three weeks, overall market sentiment remains optimistic. Thielen predicts that in the short term, some funds may flow back from high-volatility altcoins to Bitcoin, which is expected to provide some support for the overall price.
However, he also reminds investors that in the current environment, it is especially important to remain cautious and strictly control risk exposure.
