Today, the price of Bitcoin dropped sharply after hitting the threshold of $123,000, causing over $800 million in Long position liquidations across the cryptocurrency market.
After breaking through an important price zone, the price of Bitcoin faced significant selling pressure and retraced to an intermediate point, which determines the next trend of the market.
MAIN CONTENT
Bitcoin just broke the resistance level of $120,000 and then dropped back, creating an important support zone around $116,300.
Technical indicators show that short-term momentum is declining, but the long-term trend remains positive.
Maintaining this support zone will trigger a bounce back to $120,000; otherwise, a deeper correction may occur.
How is the price of Bitcoin forecasted in the short term and long term?
Bitcoin continues to maintain an upward trend on a larger timeframe, but on the one-hour chart, the price has created a lower low, indicating adjustment pressure in the short term.
Important technical price levels include $120,000 (resistance), $118,200 (immediate support), and $116,300 (main support zone combining Fibonacci, 200-day EMA, and daily support) shaping the next price action.
The combination of technical factors around the $116,000 to $117,000 area is regarded by analysts as the critical price zone, determining Bitcoin's recovery or further correction.
“This combination makes the $116,000 to $117,000 area a crucial support zone for Bitcoin.”
Market analysis security, 2024
What is the current market sentiment and risk?
The momentum indicator on the four-hour timeframe shows a positive hidden divergence of the RSI, signaling a potential recovery; however, the daily chart shows a bearish divergence, warning of the risk of deeper corrections.
Ethereum also shows high volatility, alongside the potential to test new highs, investors need to be cautious before reversals caused by large liquidity in high price regions.
If Bitcoin maintains the support level of $116,300, the price is likely to recover to the $120,000 range, even extending up to $128,000. Conversely, losing this support zone could lead to a strong correction, marking a shift to a downtrend after months of price increase.
“The market has absorbed liquidity at the recent peak and was quickly rejected, showing greed and investors not locking in profits in time.”
Cryptocurrency market expert, 2024
Frequently Asked Questions
1. Can the price of Bitcoin recover immediately after this drop?
Based on technical analysis and RSI indicators, Bitcoin is likely to recover if it maintains the important support level around $116,300.
2. What is the key support level to prevent the next correction?
The zone from $116,000 to $117,000 is considered a key support level, combining multiple strong technical indicators.
3. Can Bitcoin return to the peak of $123,000 in the short term?
Returning to the threshold of $120,000 is a viable scenario if the support at $116,300 is maintained, but it still depends on market momentum.
4. What are the main risks currently facing Bitcoin investors?
The risks come from the short-term downtrend and the potential for a deep correction if the technical support zone is lost, causing significant volatility and position liquidations.
5. How does Ethereum influence the sentiment in the cryptocurrency market?
Ethereum's high volatility and potential to create new highs contribute to shaping market sentiment regarding both risk and opportunity.
Source: https://tintucbitcoin.com/bitcoin-hom-nay-gia-btc-giam-sau/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
