- Bitcoin price is being challenged by very important support at $113,000 and may reverse back to higher levels or fall further if it is breached.
- The resistance of $118 000 is another critical point of resistance to the upward trend which is to be condensed further in case of a possible test.
- There is no clear upward trend with the Bitcoin price below the 200 EMA, and the current support level at $113,000 may be an opportunity to push higher.
Bitcoin price has been facing remarkable volatility, making people wonder whether it can continue to move upwards. The cryptocurrency has declined after making gains in August and is now facing key support levels. Traders are paying close attention to the $114,000 support level as Bitcoin price heads lower, as a price move below this level could trigger a decline.
Key Support Zone and Future Outlook for Bitcoin Price
Bitcoin price has now reached an important support area between $113,000 and $112,000, where buyers have constantly bought in the past according to analyst AltcoinSherpa. This has been crucial, with bounces off the zone at $112,000 on July 11 and $113,000 on August 1. Should the price maintain above this support, then there is a potential reversal at the resistance levels of $118,000-$120,000.
Source: AltcoinSherpa/X
Nevertheless, a move below $112,000 might trigger an additional decline, with the next potential support levels at $110,000 and $107,000. A change in sentiment may further drive the price downwards to around $105,000 or $100,000, depending on the downward pressure.
The price of Bitcoin is being strongly resisted by the levels at $118-$120k, so far witnessed, which have successfully curbed the crypto-asset in the past, as noted by analyst IncomeSharks. However, a breakout above this zone, might drive Bitcoin higher towards new highs of around 124,000 or 128,000 indicating an upbeat trend.
Source: IncomeSharks/X
Failure to recapture the $118,000 could wait to see a deconsolidation or retracement, where resistance will be at the $114,000 and 112,000 levels. A move below the $112,000 down to $110,000 or $108,000 could indicate a more profound decline. These few days are crucial in identifying the direction of the trend.
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