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Bitcoin’s recent trading patterns indicate the cryptocurrency is at a critical juncture, with analysts closely watching whether it can stabilize or if current weakness will lead to further declines.
After breaching the $112,000 mark, three crucial support levels i.e., $110,000, $111,400, and $112,000, are being tested, according to recent analyses.
Traders and analysts are pinpointing specific price points that will dictate Bitcoin’s near-term trajectory:
$112,000: This level is considered a critical support threshold by firms like Swissblock Technologies. Maintaining prices above $112,000, coupled with a stable overall risk environment, could allow Bitcoin to regain strength.
$110,000: Flagged as a “lifeline support,” this level carries significant historical weight, having previously acted as a key battleground, particularly when buyer momentum has faltered. A breach below $110,000 could open the door for steeper declines.
$111,400: This figure represents the “short-term holder cost basis,” which is the average purchase price for Bitcoin held in wallets for roughly 155 days. Sustained trading below this cost basis is often interpreted as a sign that bearish sentiment is gaining psychological dominance among short-term investors.
Bitcoin recently dipped below one of these key supports and is currently hovering near the others. The failure of these support levels could signal a shift from a period of mild weakness to a more extended bearish phase.
Conversely, if Bitcoin manages to hold above all three thresholds, it could spark renewed investor confidence and trigger a price rebound.
