Current situation
Bitcoin has recently dropped to around $112,000-$113,000 after a wave of liquidations in investors' positions who had entered with a large leverage #BTC☀️ .
The entire market has been affected, with a drop in Ethereum and other altcoins.
Despite the decline, there are attempts to rebound this morning, but resistance is strong around $114,000-$116,000 approximately.
Important supports and resistances
Main supports:
1. ~$112,000 — An important level now, because if broken, it increases the pressure and the vehicle could drop lower.
2. ~$111,400 — This number is associated with the average purchase cost for nearby investors (short-term holder cost basis), and often people who bought near this price are sensitive to it.
3. ~$110,000 — A stronger support if the drop continues.
Important resistances:
1. ~$114,000-114,500 — The first resistance that could be a barrier to any upward attempt.
2. ~$116,000-118,000 — The major resistance that must be broken if we want to see a clear rise.
Factors that are currently playing a role
Liquidations: Many long positions were automatically closed due to a sudden drop, creating additional selling pressure.
The timing is fragile before economic data from the U.S. Federal Reserve, and the words of officials may affect the market.
The general mood (market sentiment) and excessive bets (high leverage) make any sudden movement have a big impact.
Possible forecasts
Bearish scenario: If $112,000 is strongly broken, the price could drop towards $110,000 or below this level until there is a new strong support.
Bullish scenario: If the price can bounce from support around $112,000 and break resistance ~$114,500 with high trading volume, it could reach ~$118,000 or more, especially if there is a clear breakout of the current channel resistance.
Tips for traders
Use a stop loss below the important support (for example, below $112,000) to protect your capital.
Your entry should be based on confirmation signals (reversal candle + high trading volume).
Don't enter a large position if the market is unclear and filled with fear and volatility.
If you see the RSI or momentum indicators showing that the price has become oversold, it might be the time for "buying the dip".
Today's Bitcoin market has opportunities, but the risks are high. The support at ~$112,000 is key. If it holds, we may see a strong rebound and resistance. If it breaks, we might see a larger drop.
