Bitcoin News Today: Bitcoin May Drop to $112,905 Before Reclaiming $124,514 Fibonacci Mark

Bitcoin’s price trajectory has drawn attention to a potential correction phase, with technical analysis suggesting a drop to $112,905 before attempting to reclaim key Fibonacci resistance levels. The cryptocurrency recently broke out of a triangle formation near $119,139 but remains within a corrective pattern, according to a July 24, 2025, analysis by BigMike. The move lacks impulsive momentum, indicating the market may not have completed its consolidation phase [1].

Elliott Wave analysis identifies a complex ABC correction structure, with wave A peaking at $121,267 before retreating to $116,191. A subsequent triangle formation in wave B has now given way to a projected wave C targeting $112,905 or $111,500. Fibonacci extensions at 1.618 and 2.618 levels reinforce these potential support zones. Traders are monitoring volume data, which shows accumulation near $117,716 and $116,800, as critical short-term support levels that could trigger a pivot toward $122,866 if BTC holds [1].

The recent breakout’s weakness is underscored by momentum indicators. Stochastic RSI and relative strength index (RSI) readings reveal fragmented cycles within the consolidation phase. While the Stochastic RSI has recently turned upward from oversold territory, suggesting a short-term bounce, weak volume and an unresolved corrective structure limit the potential for a sustained breakout. Price remains tightly bound within a range, with no clear trend emerging since the inception of wave B [1].

A bullish scenario hinges on Bitcoin completing its correction. If the price dips to $112,905 and stabilizes, it could set the stage for a rally targeting the $124,514 Fibonacci extension level. This projection assumes BTC reclaims $121,267, the prior peak of wave 1, and breaks above the $122,866 upper volume cluster with strong volume. Analysts caution that until these conditions are met, the market remains vulnerable to further retracements [1].

The technical outlook highlights extended volatility. A successful retest of $124,514 would require a sustained break above the triangle’s upper boundary and confirmation on the 30-minute chart. Conversely, a failure to hold above $112,905 could prolong the correction, testing deeper support zones. Traders are advised to monitor volume profiles and Fibonacci retracements for signals of exhaustion or renewed buying pressure [1].

Source: [1] [Bitcoin May Drop to $112,905 Before Reclaiming $124,514 Fibonacci Mark] [https://cryptonewsland.com/bitcoin-drop-to-112905-before-124514-fib/]