Bitcoin Price Analysis reveals mounting uncertainty as BTC approaches a vital support zone. Investors are closely monitoring price action, fearing that the market may be on the verge of a significant correction if support fails to hold. However, opportunities for a bullish reversal remain as the price structure evolves.
Bitcoin Price Analysis: The Daily Chart
On the daily chart, Bitcoin has been rising within a long-term ascending channel, reaching a new all-time high above $124,000. Recently, the trend has shifted as BTC dropped out of this channel, moving downward with momentum toward the key $110,000–$112,000 support area. This level coincides with the 100-day moving average, making it a make-or-break point for the market.
The market’s reaction at this critical support will shape Bitcoin’s short- and mid-term direction. If bulls defend this area, BTC could rebound and initiate another upward phase. Conversely, a breakdown could trigger a deeper correction, putting further pressure on prices.
Short-Term Bitcoin Price Analysis: 4-Hour Chart
Examining the 4-hour chart, the $112,000 level stands out as the previous swing low and a crucial support. A decisive move below this could shift the market structure into a bearish phase for the coming weeks. The Relative Strength Index (RSI) is currently below 50, indicating negative momentum, and is nearing oversold territory. An unsuccessful defense of this support could propel Bitcoin down to the $104,000 fair value gap, a region marked by early July lows. This area may offer a high-probability chance for a bullish reversal if tested.
On-Chain Insights and Market Sentiment
Active Addresses and Network Health
From an on-chain perspective, Bitcoin’s 100-day moving average of active addresses reveals divergence from the price trend. While BTC soared to new highs above $113,000, the number of active addresses has declined. Sustained price rallies have historically been accompanied by increasing network activity, signaling widespread adoption.
Currently, active addresses are far below their peak and continue to drop, despite elevated prices. This weakening on-chain metric raises concerns about the rally’s sustainability. If active address numbers remain low, it may signal that fewer participants are supporting the price, increasing the risk of a correction. Analysts recommend tracking network activity as a key indicator for future price moves. For more on blockchain fundamentals, see this detailed blockchain analysis.
Suggested H2: “What’s Next? Bitcoin Price Analysis and Market Outlook”
As the critical $112,000 level is tested, Bitcoin Price Analysis remains essential for investors navigating the current uncertainty. Whether BTC rebounds or faces further losses will depend on both technical support and underlying on-chain trends. Close monitoring of these factors will be crucial in the days ahead.
