The price of Bitcoin spent the past week floating in a tight tire And bounce between $ 108,000 and $ 112,000 without any clear direction. There have been several rejections at the price level of $ 112,000 and technical analysis shows pressure around The 200-day progressive averages on the four-hour graph.
A technical analysis in particular shared by Crypto analyst Daan Crypto shows Bitcoin runs the risk of a breakdown Below $ 100,000, but Bulls still have the chance to organize a recovery rally in the coming weeks.
Analyst warns against wiping monthly lows
In his last post about The Social Media Platform X, Daan Crypto Trades noted that Bitcoin is currently indecisive and that the price action is leaning to a sweeping of the monthly lows. This movement is based on the 4-hour candlestick Time Frame graph, which shows that the Bitcoin prize was recently rejected on the 200ma/EMA last week.
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The 4 -hour candlestick below shows that Bitcoin has been traded in a defined range since 25 August, with equal lows that forms a weak base around $ 107,000 and the liquidity underneath. This makes a stop hunt a possible next step.
Such a movement, the analyst explained, would probably be Open a bearish case From panic on the market, which can ultimately cause Bitcoin to collapse below the price level of $ 100,000.
However, the analyst also identified the price zone from $ 103,000 to $ 105,000 as the level of support Where buyers can intervene. According to him, this area would also be a logical access point for Swing -long positions if the Bitcoin price indeed breaks down below $ 107,000.
Conditions for a bullish recovery
According to the analysis, Bitcoin Bulls have the chance to prevent a demolition of $ 100,000 by keeping more than $ 105,000 to $ 103,000. Despite the explanation of a Bearish Basisscase, Daan also described A route map for the bulls.
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The first condition would be strength above $ 115,000, which would be a break of Augustus low, which became resistance in the first week of August. A break and close to $ 115,000 would be invalid Every bearish Momentum in the short term.
As an alternative, he pointed to a quick liquidity handle below the monthly lows at $ 107,000, followed by a recovery of the $ 107,000 and $ 112,000 levels, as the most bullish scenario. According to the analyst, this second setup could pave the road for a persistent one-to-twist-month Uptrend Rally until October and November.
For now, the analyst said that he is on the sidelines, except for short -term items. At the time of writing, Bitcoin acts at $ 111,733, an increase of 0.7% in the last 24 hours.
Featured image of Pixabay, graph of TradingView.com