Bitcoin Plunges Below Critical Support - Bears Target $108K to $105K Zone as Wedge Pattern Breaks
Bitcoin's technical breakdown sends shockwaves through crypto markets as the flagship cryptocurrency slices through rising wedge support.
The Breakdown
BTC's decisive move below pattern support triggers alarm bells among traders. That key level had held for weeks—until now.
Price Target Zone
Bears now eye the $108,000 to $105,000 range as next potential downside objective. Market sentiment flips from cautious optimism to outright concern as liquidation cascades accelerate.
Technical traders scramble to adjust positions while traditional finance pundits suddenly remember crypto exists—just in time to pronounce its demise (again). Nothing moves markets like a good old-fashioned breakdown... except maybe Wall Street 'experts' discovering volatility for the first time.
- Bitcoin drops under $113K to a low of $112,565 as traders watch Jerome Powell’s Jackson Hole speech for clues on U.S. rate cuts.
- SOPR shows mild losses from short-term holders; capitulation likely if readings fall below 0.9, hinting at a possible market bottom.
- RSI at 40 and MACD negative signal persistent weakness, raising chances of deeper downside moves before any potential rebound.
Bitcoin declined to its lowest in several weeks as traders shifted to the Federal Reserve conference in Jackson Hole. The cryptocurrency dipped below $113,000 and hit a low of $112,565, the lowest since August 3. Investors are signaling caution before Jerome Powell delivers an annual address.
Market analysts also observe that Bitcoin is in a post-ATH contraction stage. Glassnode observes that new buyers with unrealized losses are influencing short-term price movements. These positions are in danger of being squeezed. The impending price movement may indicate the potential bottom for the market.
SOPR Signals Mild Losses as Bitcoin Tests Key Technical Levels
According to the platform findings, one could gauge this metric by examining the Spent Output Profit Ratio (SOPR) based on the age measure. In the case of holders who have less than three months’ positions, the SOPR is currently between 0.96 and 1.01.
Source: X
Mild loss realization is implied by that range. In case losses increase and SOPR remains below 0.9, this WOULD indicate capitulation, when local bottoms were sometimes established, and reversal followed.
Analysts point out that bitcoin traded below its rising wedge support pattern. The immediate resistance is the 50-day simple moving average at around $116,103. There has been failed retesting of the resistance zone at $124,450 that further dulls sentiment.
Bitcoin Weakness Builds
Momentum indicators are set to continue weakness. The relative strength index is 40, or almost in the oversold territory. The MACD is also negative leaving us with selling pressure in the market. The candlestick pattern is poised to indicate the initial phase of what may be considered as three black crows, which is a bearish formation that tends to indicate stronger slumps in the future.
Source: TradingView
In case Bitcoin does close under $112,000, then traders should anticipate downside target zones of $108,000 and $105,150. Above this range, breaking over $116,000 and $117,000 may allow a route into $120,900 and a revisit of $124,450.
The arrangement is very delicate to traders. The bears will focus on reversed stalled rallies below $116,000. Bulls are meanwhile awaiting reversal signs. The response or confirmation would be made up of a bullish engulfing candle or a higher low of more than $112,000. Both parties are awaiting statements by Powell that will dictate how they will MOVE forward right up until then.
