- Bitcoin hovers near $112K support, with potential rebounds toward $115K and $118K, while a failure could trigger deeper retracement.
- Ethereum trades near $4,000–$3,700 support, rebounding from $4,060 with short-term targets at $4,340 and medium-term growth toward $6,300.
- Cryptocurrency liquidity plunged 24% in three weeks, piling pressure on Bitcoin and Ethereum as pivotal levels dictate direction.
The cryptocurrency market is undergoing a correction as Bitcoin and Ethereum are approaching key support levels..Traders are watching closely to determine whether recovery or deeper losses will follow.
Bitcoin at Crucial $112K Support
Bitcoin has fallen from its all-time high of $124,590 and is now trading near $113,500. Market analyst Ali noted that inflows across the market have dropped by nearly 24% in three weeks, falling from $86 billion to $66 billion.
The current support range for Bitcoin lies between $112,800 and $112,000. This zone has already been tested once, and another retest could spark bullish divergences on the four-hour RSI. The level is now seen as a critical pivot for traders.
If Bitcoin holds this support, a rebound toward $115,000 and $118,000 becomes likely, with the potential to retest $124,600. However, losing $112,000 would expose Bitcoin to a deeper correction toward $108,250, as on-chain demand weakens below this level.
Ethereum Defends the $4,000 Zone
Ethereum has followed Bitcoin’s lead in dumping from highs of around $4,800, and it is now trading around the $4,000 to $3,700 range, a support area that is likely important for the bullish market structure.
On the shorter term charts, Ethereum is showing signs of a bounce from $4,060, indicating buyers are attempting to defend this range. A continued push higher, could take prices as high as $4,340, indicating that the current correction may be stabilizing fairly early in the move.
For Ethereum to confirm a more substantial recovery, a break and hold above $4,400 will be required. If that move establish above $4,400, traders may expect more momentum towards the medium term target of $6,300- while $4,000 becomes an important support level to hold.
Market Liquidity and Trading Strategy
The overall crypto market is also showing weakness, with capital inflows declining sharply. The three-week contraction in liquidity has made Bitcoin’s $112,000 and Ethereum’s $4,000 levels even more important for traders seeking clear signals.
Ali emphasized that both assets are at decisive points. A successful defense of these ranges could confirm the end of the corrective phase and trigger a rebound. Failure to hold would extend the retracement and challenge broader market strength.
Until we see stronger buy signals, caution is still advised for traders. Patience and disciplined risk management are still the order of the day as the market consolidates at these key levels.
