Cryptonews - The price of Bitcoin stands at $110,360, down more than 1.15% over the last 24 hours, while traders are watching the support area at $112,000. With a direct market cap of $2.19 trillion and trading nearly 19.9 million BTC, the currency still reigns over the crypto sector, but the short-term outlook appears bleak.
Analysts see the price of Bitcoin as being 'hanging by a thread' after touching the lower limit of the support channel; breaking the $112,000 level could open the door to larger declines, with the range of $108,695-$110,000 considered the last line of defense before slipping to deeper levels. However, the broader picture shows that institutional demand remains strong, but short-term traders are questioning whether the bullish wave of this summer has reached its peak.
Technical outlook for the price of Bitcoin: Is a sharp decline looming?
On the technical front, the price of Bitcoin remains trapped within a descending channel after failing at the beginning of the month to maintain above $124,450, drawing a series of lower highs, while the price currently stabilizes around $110,100.
Key technical levels:
The simple moving average measured over 50 days ($116,553): now represents upper resistance.
Pivot point at $112,000: Represents the intersection of a previous trend line with a support level.
Support range $108,695-$110,000: A critical floor before further declines.
Downside risks: $105,150 and $101,550 if current support fails.
Momentum indicators suggest caution; the Relative Strength Index (RSI) stands at 38, indicating that the currency is in an over-sold area without any positive divergence, while the MACD is negative reflecting downward pressures. Recent candles show indecision with long lower wicks and long upper shadows, indicating a struggle between buyers and sellers.
