BTC struggles to hold key support amid growing market uncertainty
Bitcoin’s price slipped below the $112,000 mark in early Tuesday trading, marking its sharpest daily decline since late September. The move has placed the leading cryptocurrency back inside a critical support zone between $110,000 and $108,000 — a level that previously fueled multiple bullish rebounds.
On the daily chart, BTC/USD broke down from a rising parallel channel, losing momentum after repeated rejections near the $124,000–$126,000 resistance region. The latest sell-off confirms a short-term shift in sentiment, as traders reassess market risk following the recent volatility across crypto assets.
Technical signals show fading bullish momentum
BITX Market analysts note that Bitcoin’s technical structure is turning increasingly cautious. “A clean breakdown below $112K opens the door toward the $105K–$107K liquidity pocket,” said one technical strategist. “If that zone fails to hold, we could revisit the broader demand block around $96,000–$100,000, where major accumulation occurred in May and June.”
The daily candle structure shows declining volume on upward recoveries and stronger selling pressure near upper resistance zones — classic signs of buyer exhaustion.
Underlining the concern, the RSI has slipped from overbought territory, confirming that the rally momentum has weakened significantly since last week’s highs.
Despite the correction, long-term traders remain cautiously optimistic. “The macro trend remains bullish above $100K,”BITX market analyst explained. “However, the next few sessions are crucial — a failure to defend $110K could trigger deeper liquidations before any sustainable recovery.”
For now, Bitcoin must reclaim the $115K–$117K region to neutralize bearish sentiment and reestablish upward momentum. Until then, traders are advised to monitor volume trends and reaction at key support levels for early signs of stabilization.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.