Key Takeaways
- The price of BTC has dipped below $118,000 as altcoins suffer significant losses.
- The leading cryptocurrency could fall below the support level of $116,000 if bearish sentiment intensifies.
Bitcoin Hovers Around $117,000 Amid Significant Altcoin Losses
The cryptocurrency market has experienced a downturn in the past 24 hours following a brief bullish trend. Bitcoin, the leading cryptocurrency by market capitalization, has seen a less than 1% decrease, trading at approximately $117,000.
In contrast, altcoins have encountered severe losses during this correction phase. XRP has dropped by 11% and is at risk of tumbling below $3.00, while Ether may fall beneath $3,500 after losing 3% of its value.
Other notable cryptocurrencies such as Solana, BNB, TRX, ADA, and Dogecoin have also been trading in the red. This bearish performance has resulted in an overall decline of 2.6% in the total cryptocurrency market capitalization, now sitting at around $3.85 trillion, just days after reaching a record high of $4 trillion.
Bitcoin Faces Potential Drop Below $116,000 as Selling Pressure Mounts
The BTC/USD four-hour chart remains bullish, suggesting that buyers are still in control despite signs of weakness. Technical indicators are yet to show a bearish trend, although their momentum has slowed in recent days.
The trading pair is currently in a state of consolidation, poised either to surge to a new all-time high or to undergo a downward correction. Bitcoin could potentially retest the support level at $116,000 and the TLQ level in the coming hours. Should the TLQ act as liquidity support, it could propel BTC upwards. However, failure to maintain this level may lead to a drop.
The MACD lines are in the neutral zone, indicating market consolidation, while a relative strength index (RSI) of 51 reveals that buyers are losing control. If buyers fail to defend the $116,000 support level, Bitcoin may see a significant decline toward the next support at $112,000. Conversely, if the TLQ at $116,000 serves as a springboard, BTC could break through the resistance at $120,000 and reach a new historical high.
