Key Points:
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To maintain a positive outlook and prevent a significant price decrease, Bitcoin must close the week above $114,000.
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Failure to sustain above $112,000, coupled with a potential bear flag pattern, could lead to a fall towards $103,700.
Bitcoin (BTC) could potentially avoid a substantial price correction if it manages to close the week above $114,000, according to market observers.
Why Bitcoin Needs to Reclaim $114,000
The Bitcoin price is currently on track for its third consecutive week of losses, sitting approximately 11% below its peak of $124,500 recorded on August 14, as indicated by data from Cointelegraph Markets Pro and TradingView.
Bitcoin has recently dipped below the critical $114,000 mark, a level that has previously provided price support for the past six weeks, as demonstrated in the chart.
Related: Bitcoin megaphone pattern suggests a target of $260K as the price signals an ‘oversold’ condition
According to market analyst Sam Price, Bitcoin needs to regain this level as support to confirm the continuation of its upward trend.
“Bitcoin buyers are showing strong support around $109K,” Price mentioned in a recent social media post, adding:
“A weekly close exceeding $114K would be a significant positive signal.”
The noticeable lower wick extending below $109,000 suggests strong buying interest, indicating that buyers are actively defending this support level.
Analyst Rekt Capital emphasized the importance of Bitcoin reclaiming $114,000 as a support level to prevent a drawn-out correction phase.
“If $114K turns into a resistance level, the pullback could last longer,” the analyst stated in a social media update, noting:
“The current market behavior suggests a downside deviation, emphasizing the need for Bitcoin to close the week above $114K for a bullish perspective.”
Bitcoin Bears Aim for a Drop to $103,000
As previously reported, Bitcoin’s price trajectory hinges on maintaining levels above $112,000.
MN Capital’s founder, Michael van de Poppe, echoed similar views, observing Bitcoin trading around $112,800 and highlighting the importance of the $112,000 support level for the BTC price.
“If Bitcoin fails to stay above $112K, a significant correction across the market is likely.”
As of Friday, Bitcoin had breached this support, validating a potential bear flag formation on the four-hour chart.
A bear flag often indicates the continuation of a downward trend, suggesting that sellers are in control.
It’s worth noting that the price was rejected near the flag’s upper boundary around $114,000 and subsequently dropped below its lower boundary, coinciding with $112,000.
The pattern suggests a potential target of around $103,700, representing a possible 6% decline from current levels.
The relative strength index (RSI) remains below the midpoint, further supporting the bearish momentum.
Liquidation data indicates significant buy orders extending down to $104,000, suggesting that the BTC price may decline further to capture liquidity around this level.
This article is intended for informational purposes only and does not constitute financial advice. All investment and trading activities involve inherent risks, and individuals should conduct thorough research before making any decisions.