đ¨ Bitcoin Alert: Brace for a Potential Plunge to $110,000 as Bullish Fatigue Sets In
Bitcoin's relentless rally shows cracksâtraders eye $110K as exhaustion looms.
### The Bull Run Hits a Wall
After months of parabolic gains, Bitcoin's chart flashes warning signs. The $110,000 level emerges as a critical support zoneâbreak it, and the bulls might need defibrillators.
### Liquidity Hunt or Genuine Correction?
Market makers love a good shakeout. Whether this is a healthy pullback or the start of something uglier depends on who's holding the bag (spoiler: probably retail).
### Hedge Funds Already Positioning
Whispers from institutional desks suggest hedge funds are quietly loading shorts. Nothing like profiting from others' panicâWall Street's version of 'thoughts and prayers'.
### The Cynic's Take
When Bitcoin stumbles, a thousand 'I told you so' tweets bloom. Meanwhile, the same analysts who missed the rally will claim they predicted this dip all along.
Bitcoin Momentum Pulling Toward Bearish
As crypto analyst TehThomas explains in an analysis, the Bitcoin price action shows that it has moved toward a key rejection block. This rejection block was around the $122,000 level, explaining why the cryptocurrency saw a pushback from here.
Given this, Thomas explains that this movement points to exhaustion in the market. This could suggest more sellers are beginning to take profit, and with buyers taking a step back, there is not enough demand to hold off the supply being poured into the market. If this continues, then there will be a shift into the bearish territory for this.
Moreover, the fact that he rejection block aligned with the 4-Hour charts shows there is a strong confluence zone for sellers. This puts bears in charge at this level, and with the price closing within this confluence zone, it gives more strength to the reversal trend and could push for a further retracement.
Buying Into The Fair Value Gap
There is currently a fair value gap that is yet to be filled above $112,000. This makes this level the first target in the event of a price retracement. The likelihood of a retracement to this level is high because historically, fair value gaps tend to be filled first before there is a continuation of the bullish momentum.
Additionally, there is also the fact that the Bitcoin price moved âthrough a cluster of resting liquidity above recent highs.â This was the level that acted as the trap for late buyers and longs and triggered a wave of liquidations as the price moved downward again.
If this bearish scenario does play out, then the analyst expects that the bitcoin price will actually crash back as low as $110,000 to fill the gaps. However, a completion of this move would serve as the setup for the next upward wave toward the peaks.