Bitcoin’s Unimpressive Bounce Fails to Diminish Downside Risk; Support Around $112K
Bitcoin's latest rally barely registers—traders watch support levels crumble while the market holds its breath.
Technical Breakdown
The bounce lacked conviction, failing to spark meaningful buying pressure. Resistance levels held firm as selling momentum accelerated toward the $112K support zone.
Market Psychology
Investors eye that $112K floor like it's the last lifeboat on the Titanic—everyone knows it won't hold if the real selling starts. Classic crypto behavior: panic sets in precisely when cool heads should prevail.
Institutional Impact
Whales aren't buying this dip—they're waiting for retail to capitulate first. Smart money lets the amateurs catch the falling knives while positioning for the real entry points.
That $112K support better hold—or we're revisiting the days when 'HODL' meant hemorrhaging money while pretending it's a long-term strategy.
The weak bounce is consistent with bearish momentum signals, as the 50-, 100-, and 200-hour simple moving averages (SMAs) are aligned in descending order and trending downward.
On the daily chart, prices have convincingly broken below the rising trendline support, signaling a shift from bullish to bearish momentum. Both the longer-term MACD histogram (50,100,9) and the more commonly used MACD (12,26,0) are showing increasing negative momentum, with deeper bars below the zero line.
Therefore, the odds appear to be stacked in favor of a continued move lower. The first level of support is $11,982, from which the market turned higher on Aug. 3. The 100-day SMA is seen at $11,053. If these levels are taken out, the focus WOULD shift to the 200-day SMA at $100,484.
A convincing MOVE above the 50-day SMA at $116,033 would negate the bearish outlook.
- Resistance: $116,033, $120,000, $122,056.
- Support: $111,982, $110,053, $100,484.
