Bitcoin News Today: Bitcoin Loses Key $115,000 Support as Correction Fears Intensify

Bitcoin's recent price action suggests deteriorating market conditions, with growing concerns about a potential correction intensifying among market observers. The cryptocurrency has lost the crucial $115,000 support level, triggering increased selling pressure across multiple timeframes. The once-bullish momentum that drove upward movement has significantly weakened, and fears of a deeper decline below $110,000 are becoming more prominent [1].

According to analyst Axel Adler from CryptoQuant, a short-term resistance has formed at $112,000, which represents a constructive development as the market attempts to stabilize. However, the price range between $112,000 and $105,000 is considered structurally fragile. Adler warns that a breakdown below $105,000 could trigger a wave of long liquidations and accelerate downward pressure from short-term holders (STHs) [1].

The current STH Realized Price is at $117,000, placing the entire cohort of short-term holders underwater. These investors are particularly vulnerable to emotional reactions during periods of volatility, and any additional negative catalysts could prompt panic selling, further exacerbating downward pressure on Bitcoin’s price [1].

Adler emphasized the critical nature of the $105,000 support level, which is derived from the aggregated STH Realized Price. A drop into this range could increase the pressure to hold, but it may also serve as a strong technical and psychological floor that could stabilize or even reverse the current downtrend [1].

Market sentiment is further compounded by weak US jobs data, which has reignited speculation about potential Federal Reserve interest rate cuts. While such a policy shift could eventually be bullish for risk assets, the current environment remains marked by uncertainty, which adds to the fragility of the market [1].

On the 4-hour chart, Bitcoin is currently trading near $115,478, attempting to rebound after dipping below $113,000 earlier in the week. The price is approaching the 100 and 200 simple moving averages (SMAs), which currently act as resistance at $116,596 and $115,799, respectively [1].

A clean breakout above the $116K resistance zone with strong volume could signal a return of bullish momentum and potentially lead to a retest of the $122K level. However, the volume during this attempt remains lower than during the July breakout, and the failed reclamation of higher levels indicates buyer caution. Unless Bitcoin can successfully consolidate above $116K, the risk of rejection remains high, which could send the price back into the $112K–$113K support range [1].

The market’s bearish sentiment is further reinforced by Adler’s observation that retail investors are unable to sustain upward price movement. The lack of consistent demand contributes to structural weaknesses, increasing the likelihood of a prolonged correction [1].

Source: [1] Bitcoin STH Realized Price Signals Fragile Support: Correction Risk Intensifies (https://www.newsbtc.com/bitcoin-news/bitcoin-sth-realized-price-signals-fragile-support-correction-risk-intensifies/)