Bitcoin (BTC) market faces uncertainty despite recent bullish momentum. With a 3% increase in 24 hours, experts ponder: could the leading cryptocurrency correct towards $114,000 soon? Let’s delve into the technical analysis.
Market Update: Bitcoin Retreats, Pressure Intensifies
At the time of writing, Bitcoin (BTC) is trading around $114,752, showing a decline after Friday evening’s euphoria when it reached $117,300. Indeed, behind this rise lie technical signals that deserve close attention.
According to CoinStats data, the top 10 cryptocurrencies display an overall increase, but Bitcoin remains below a decisive technical level in the short term.
A CME Gap and a Bounce to $117,000?
The Bitcoin created a CME gap this Saturday, losing approximately 1.87% of its value since the opening of Saturday’s trading session. So far, CME gaps have almost always been filled in the days that follow, which suggests BTC could bounce back to $117,000 in the next few sessions.
Key technical indicators such as the RSI in neutral phase but declining, along with a bearish divergence on the MACD, complete this mixed picture. Additionally, the decrease in volume signals a weakness in buying interest.
Daily View: Bitcoin’s Bullish Momentum Fades
On larger timeframes, Bitcoin‘s configuration reflects a hesitant recovery. Yesterday’s bullish candle hasn’t been confirmed by new highs, demonstrating a lack of conviction from the bulls.
BTC has indeed failed to establish a stable support above $116,000. Closing below this threshold increases the risk of a return to $114,000. From a chartist perspective, a lateral consolidation pattern could form in the coming days.
A bearish trendline has formed, and the resistance between $117,000 and $118,000 could take several days to break. The liquidity zone at $113,500 might therefore also be revisited in the next sessions.
In this context, we should anticipate a likely short-term price range between $113,000 and $118,000, with low expected volatility, barring any major macroeconomic catalyst.
If this zone is broken with strength and the trendline is liquidated, Bitcoin could target the liquidity zone at $122,000 afterward. Indeed, numerous shorts are positioned in this price zone, waiting to be liquidated. A situation worth monitoring closely.
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