Bitcoin is still facing strong selling pressure, the price has slipped deeply below the important support level of $112,500 and shows no clear signs of recovery. The current downtrend may continue, bringing BTC closer to lower support areas around $105,500.

Bitcoin Weakens Under Selling Pressure

After closing below $113,500, Bitcoin began a new downtrend and broke the support level of $112,000. Increased selling pressure has caused BTC to fall below the $110,000 mark and the 100-hour simple moving average (SMA 100h). In this downtrend, the price hit a low of $108,734 before a slight recovery above $109,500, but still failed to regain the critical level of $112,000.

Currently, the nearest resistance level is $110,750, followed by $112,500 - coinciding with the main downtrend line on the BTC/USD hourly chart. If this area is surpassed, BTC could test the $113,000 level, corresponding to the 50% Fibonacci retracement level of the decline from the peak of $117,354 to the bottom of $110,692. If successfully breached, the market could aim for higher areas of $114,500 - $115,500, even a further target at $116,500.

The risk of a deep decline still exists

Conversely, if BTC cannot break the resistance level of $112,500, the likelihood of a new downtrend is plausible. The nearest support is at $108,500, followed by $107,200 and $106,500. Breaking these levels could pave the way for Bitcoin to drop to $105,500, or even the key support level of $103,500 - which defines the long-term trend.

Technical Indicators

MACD (H1): Increasing slope in the negative zone, indicating that selling pressure remains dominant.

RSI (H1): Still maintained below the 50 threshold, reflecting weak market sentiment.

Conclusion

In the short term, Bitcoin's prevailing trend remains bearish, unless the price can surpass the $112,500 level and maintain above it. Otherwise, the risk of Bitcoin continuing to plunge to $105,500 is entirely possible. Investors need to closely monitor critical support levels to have an appropriate risk management strategy.

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