Key Points:
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For Bitcoin to maintain its upward trajectory and avoid a significant price decrease, it must close the week above $114,000.
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If Bitcoin fails to stay above $112,000 and a bearish pattern emerges, the price could potentially fall to $103,700.
Analysts suggest that Bitcoin (BTC) needs to conclude the current week with a price exceeding $114,000 to prevent a sharp price decline.
The Importance of Bitcoin Reaching $114,000 Again
Bitcoin’s price is currently experiencing its third consecutive week of losses, sitting approximately 11% below its peak of $124,500 on August 14, according to Cointelegraph Markets Pro and TradingView data.
Bitcoin has slipped below the critical $114,000 mark, a level that previously provided support for the digital asset over the past six weeks, as illustrated in the chart below.
Related Reading: $260K Bitcoin Price Target Possible Amid Oversold Conditions
According to market commentator Sam Price, Bitcoin needs to convert this price point back into a support level to validate the strength of its bullish trend.
“Bitcoin buyers are effectively holding the $109,000 support,” Price stated in a social media update, adding:
“A week ending above $114,000 would be a significant positive signal.”
The extended downward movement below $109,000 indicates “strong buying interest,” suggesting that investors are actively defending this support level.
Analyst Rekt Capital also pointed out the importance of Bitcoin reclaiming $114,000 as support to prevent a prolonged period of price correction.
“Turning $114K into new resistance would extend the pullback phase,” the analyst shared on social media, further stating:
“The market has shown a pattern of downward deviation, making a weekly close above $114K essential to maintain a bullish outlook for Bitcoin.”
Potential for Bitcoin Price to Drop to $103,000
As previously reported, Bitcoin’s future price direction depends on its ability to maintain a position above $112,000.
MN Capital’s Michael van de Poppe echoed this sentiment, observing Bitcoin’s price at $112,800 and emphasizing that the $112,000 support level is “critical” for Bitcoin.
“Should Bitcoin fail to hold above $112K, we are likely to see a significant correction across the cryptocurrency market.”
As of Friday, Bitcoin had fallen below this support, confirming a bearish flag pattern on the four-hour chart, as shown below.
A bear flag typically signals a continuation of the downward trend, indicating increased selling pressure.
Notably, the price faced resistance at the flag’s upper limit, around $114,000, and has since dropped below the lower boundary, coinciding with the $112,000 level.
Based on this pattern, the anticipated price target suggests a potential decline towards $103,700, representing a 6% decrease from the current trading price.
The relative strength index (RSI) remains below the midpoint, further supporting the bearish momentum.
Data regarding liquidation levels indicates significant buy orders extending down to $104,000, suggesting that Bitcoin’s price may continue to decline to trigger liquidations around this price.
This information is for informational purposes only and should not be considered investment advice. Trading and investing involve risk, and readers should perform their own due diligence before making any decisions.