Recently, Bitcoin's market has been a bit exciting—after dropping below $115,000, it quickly rebounded, but market sentiment is still a bit tense. Friends in the crypto circle may be wondering: Can this rebound last? Or will we see a 'cutting leek' style correction? Let's break it down carefully.
Bitcoin has fallen below $115,000, testing key support.
On Monday, Bitcoin finally turned down after nearly two weeks of range fluctuations, briefly falling below $115,000 and testing the $114,500 support. However, fortunately, BTC did not stay low for long and quickly rebounded.
Since August 7, Bitcoin has been bouncing around like on a trampoline—reaching as high as $124,200 but ultimately failing to hold that high point and returning to a range of fluctuations. At this point, some analysts have begun to sound the alarm: BTC may be entering a correction period, with a potential decline of 15%-25%.
Ali Martinez indicates that this correction has 'divergence signals', meaning market momentum is weakening, and there is a considerable chance of further declines in the future.
$112,000—can it hold?
Currently, Bitcoin's price is fluctuating between $112,000 and $122,000, indicating that the short-term momentum is turning bearish.
Martinez pointed out that if BTC drops again and the support at $112,000 breaks, Bitcoin may directly fall towards the $108,000 area. This area can be described as a 'line of life and death' because on-chain data shows a significant liquidity struggle here.
However, don't rush; after this drop, Bitcoin also experienced a small rebound, recovering to $116,500 at one point and nearing the $117,000 area. If this rebound is confirmed, BTC may short-term head back towards the upper range.
In summary, $112,000 is a critical line; if it cannot hold, the possibility of a 15% correction or even deeper becomes apparent.
What does historical data tell us?
Analyst Rekt Capital reminds everyone: Bitcoin recently failed to hold the key support of $119,000 on the weekly chart, closing below the weekly bullish flag pattern formed since early July.
In simple terms, BTC's trend has shown a 'turning signal'. According to past patterns, if previous support becomes resistance, it means the market may need to retest the $112,000 level.
He further analyzed that this could be the beginning of the second price discovery correction. Historical experience shows that this second correction usually occurs in the 5th to 7th week after the peak of the second round of upward trends. This means Bitcoin may have just entered the correction window.
The correction may not be too long or too deep.
The good news is that although BTC may drop, this correction is expected to be not as lengthy as the significant declines in 2017 or 2021.
Rekt Capital states that previous corrections in similar phases saw declines of 25%-29%, but the duration was usually only 1-3 weeks. This time, he predicts that BTC may complete its adjustment in the coming weeks, with a correction magnitude of about 15%-25%, considered a 'relatively mild' decline.
In other words, this is just the market taking a breath, accumulating energy for the next round of increases.
In conclusion: Be cautious in the short term, but still bullish in the medium term.
📌 Key Support: $112,000 📌 Short-term Risk: Falling below $112,000 could lead to a drop towards $108,000 📌 Estimated Correction Magnitude: 15%-25% 📌 Rebound Opportunity: Holding above $112,000 or rebounding to the upper range
Friends in the crypto circle, this market trend can be described as a 'heartbeat' type. Everyone must stay alert in the short term, watch the key support level, and don't forget that historically, every correction of BTC has been followed by a new round of increases 💪.
In summary: Don't fear volatility, just fear not watching the support!
Many understand the trend, but few follow the right rhythm.
Like 👍 and share, follow me to catch more market trends and watch the ups and downs of the bulls and bears together! Let's work hard together!
In the current market environment, short-term operations are indeed necessary. Waiting indefinitely for spot recovery might lead to a test of patience. I have recently been fully engaged in secondary short-term and primary dog coin operations, yielding good results. Those who want to join can follow me!
