Bitcoin trades at $115,523, down 2.1% in the past 24 hours amid heavy volatility.
$116K remains the key support level, with a failure opening risk toward the $100K liquidity pool.
Trading volume surged 19.5% to $56.48B, showing heightened market participation during the correction.
Bitcoin price is hovering around $115,523 after a steep correction from $118K, leaving traders focused on whether $116K can hold.
Market Structure and Support Levels
Bitcoin’s recent chart structure shows the cryptocurrency consolidating within a wide range, with repeated rejections from a descending resistance trendline. This pattern dominated for weeks before a breakout occurred in early August, sending BTC into the $122K–124K area. The momentum failed to sustain, leading to a sharp decline back to crucial support.
Crypto analyst Crypto Patel pointed out that $BTC is at a make-or-break zone, stating, “Holding above $116K = bullish reaction likely → next leg higher toward new ATH. Losing this support = bearish breakdown → eyes shift to $100K liquidity pool.” This observation reflects the precise market dilemma facing traders today.
Support at $116K is now being retested after the breakout. From a technical perspective, this is a textbook retest of resistance-turned-support. Market participants are weighing whether buyers can defend the level to confirm strength or if failure will open a path toward deeper losses.
Current Trading Conditions
According to CoinMarketCap information, the Bitcoin quote stands at $115,523 and has decreased on a daily basis by 2.1%. Market cap is at 2.29 trillion indicating the decline in investor confidence after the pullback after the all-time high. The drop has renewed uncertainty among both retail and institutional players.
Trading volume spiked by 19.5% in the last 24 hours to reach the figure of 56.48 billion. The ratio of volume to market capitalization is 2.49 per cent which is indicating good participation which invariably means greater volatility. Liquidity is at high levels, and the issue is whether this inflow supports accumulation or distribution that determines the outlook of the near-term direction..
Bitcoin supply dynamics remain unchanged, with 19.9 million BTC circulating out of a capped 21 million. The scarcity factor continues to underpin long-term optimism, though near-term sentiment remains tethered to whether $116K holds as valid support.
Bullish and Bearish Scenarios
In case of Bitcoin breaking above the price of $116K and recovering, traders will want to target the price of about $124K. . A breakout there could confirm momentum toward new highs, driven by renewed demand and liquidity concentration above prior levels.
On the contrary, if $116K fails, the market structure would shift bearish, invalidating the breakout. Immediate support rests near $113K, with deeper liquidity pools between $106K–108K. This zone poses capitulation risk, as panic-driven selling could accelerate.Historically, Bitcoin retests after breakouts often decide market direction with force. Either strong continuation rallies follow, or sharp sell-offs develop quickly. Traders remain alert as the market edges closer to this decisive point, making the coming sessions critical for BTC’s path.
