Bitcoin‘s recent price dip below $115,000 on August 2 marked the onset of a corrective phase. This nearly 10% drop from its recent highs did not come as a shock to market analyst Master Ananda, who interprets it as part of a natural market cycle. Despite the downturn, Bitcoin remains above $113,500, exhibiting a familiar pattern of consolidation that has previously set the stage for substantial gains. Ananda emphasizes that the upward trend is likely to persist as long as essential support levels are not breached.
What Are Bitcoin’s Support Levels?
According to Master Ananda, Bitcoin’s descent is expected to stabilize between $110,000 and $100,000, with $100,000 serving as both a crucial psychological and technical barrier. He points out that intermediary supports are found at $106,000 and $102,000, corresponding to the Fibonacci 0.382 and 0.5 levels, respectively.
Ali Martinez highlighted, “The cluster of 111,000 BTC at $107,160 is likely to ease selling pressure, according to Glassnode data.”
In collective agreement, analysts suggest the long-term bullish trend remains intact if Bitcoin does not close the week below $100,000. Historically, such downturns typically evolve into sideway movements over weeks before setting the stage for fresh peaks.
Can Bitcoin Break The $117,400 Barrier?
The downturn in Bitcoin’s value followed disheartening U.S. employment figures and the uncertainty surrounding newly imposed tariffs. This climate of reduced risk appetite has led to fluctuations in the stock market and increased short-term profit-taking. The $117,400 resistance, where 88,000 BTC are priced, has emerged as a pivotal point for a potential rebound.
While analysts have not expressed concerns about significant panic selling as long as the price stays above $110,000, they note that decreased miner sales coupled with a rise in long-term wallet holdings could facilitate a return beyond $115,000, thus potentially reaching new milestones.
Key conclusions from the article include:
– Master Ananda maintains the bullish outlook as long as $100,000 holds.
– A significant buyer wall exists at $107,160, aiding price support.
– Resistance at $117,400 is critical for possible resurgence.
The future trajectory of Bitcoin amidst external economic factors remains a focal point for traders and market enthusiasts. Vigilance on these support and resistance levels will be essential for navigating the coming weeks. Investors continue to weigh the variables that can influence these thresholds, attesting to Bitcoin’s resilient yet volatile nature.
