Bitcoin Drops 4.4% After Reaching $112,000 High

Bitcoin, the world's leading cryptocurrency, has recently experienced significant volatility, with its price surging to new highs before encountering a potential pullback. Analysts have speculated that Bitcoin could face a short-term correction, testing support levels around $100,000. This prediction comes after Bitcoin reached a new record high of nearly $112,000, only to fall sharply to as low as $107,000 as investors booked profits at peak levels. The downward correction began after Bitcoin reached a new record of $110,000, testing support around $106,700 before rebounding. The asset then moved above this level, indicating a potential retest of the $109,000 support zone.

The potential pullback has raised concerns among investors, who are closely monitoring the $100,000 level. According to the analyst's forecast, breaching this level could ignite a rally, while a sustained drop below it signals risk. The immediate support on the downside is near the $109,200 level, which could act as a crucial support zone for Bitcoin. If Bitcoin fails to rise above the $110,000 resistance zone, it could start another correction, testing the $100,000 support level.

Coindesk analyst Omkar Godbole stated that the 30-day Rate of Change (ROC) technical indicator, used to measure Bitcoin's price performance over the past month, has shown a "bearish divergence" signal, indicating a weakening momentum. Additionally, the MACD histogram on the daily chart (a widely used indicator to measure trend strength and changes) has turned negative, indicating a bearish momentum shift. These signals suggest that Bitcoin may break below its current uptrend channel or retest the key support level at $100,000. Nevertheless, the overall trend remains optimistic, in line with the recent "Golden Cross" formation of the 50-day and 200-day Simple Moving Averages (SMA).

The recent price patterns of Bitcoin have shown a repeating trend, with the asset testing support and resistance levels established in previous cycles. Monitoring these levels could enhance trading strategies in the current market environment. The asset's price has been influenced by institutional inflows and pro-crypto developments, which have contributed to its recent surge. However, the potential pullback has raised concerns among investors, who are closely monitoring the $100,000 support level.

The future of Bitcoin remains uncertain, with analysts predicting that it could easily smash $250,000 amid huge institutional inflows and pro-crypto developments. However, the potential pullback has raised concerns among investors, who are closely monitoring the $100,000 support level. The immediate support on the downside is near the $109,200 level, which could act as a crucial support zone for Bitcoin. If Bitcoin fails to rise above the $110,000 resistance zone, it could start another correction, testing the $100,000 support level. The recent price patterns of Bitcoin have shown a repeating trend, with the asset testing support and resistance levels established in previous cycles. Monitoring these levels could enhance trading strategies in the current market environment. The asset's price has been influenced by institutional inflows and pro-crypto developments, which have contributed to its recent surge. However, the potential pullback has raised concerns among investors, who are closely monitoring the $100,000 support level.