Bitcoin, the leading cryptocurrency, has faced a sharp price drop, dropping to a seven-week low. This correction has accompanied a change in market sentiment.
Bitcoin Drops to $107,000
Bitcoin fell 14%, reaching $107,400 from its $124,500 all-time high. According to new analysis, this drop indicates a market transition into a distribution phase. Over 95% of Bitcoin’s supply was in profit during the price surge, however, this figure has decreased to 90%. This indicates that the demand for assets is beginning to exhaust. Nevertheless, Bitcoin’s price in the $104,100–$114,300 zone will determine future trends.
Resistance Area at $112,000
Bitcoin’s price faces significant resistance at the $112,000 level. This level includes the 100-day and 50-day simple moving averages. To confirm the end of the correction phase, Bitcoin must overcome this area and hold above it. Analyst Daan Crypto Trades noted that a move back above $112K would be a favorable sign in the short term.
Outlook for Bitcoin
Despite a recent rebound in short-term holders' supply back to over 60% in profit, this rise remains fragile. A sustained recovery above $114K–$116K could signal reinstatement of demand and an active price increase. Conversely, if the price drops below $104.1K, it would replay previous exhaustion phases following the all-time high.
Amidst market uncertainty, Bitcoin continues to face challenges that will dictate its future movements influenced by supply and demand dynamics. Success in surpassing key levels will be crucial for indicating future trends.
