Key takeaways:
Bitcoin requires a weekly close above $114,000 to prevent a significant correction and maintain bullish momentum.
Failure to sustain $112,000, along with a breakdown of the bear flag, could lead to a decline to $103,700.
According to traders and analysts, Bitcoin (BTC) might evade a severe correction if BTC/USD finishes the week above $114,000.
Importance of Reclaiming $114,000 for Bitcoin
Bitcoin is on track for its third week of losses, sitting 11% lower than its all-time high of $124,500 reached on August 14, based on data from Cointelegraph Markets Pro and TradingView.
The cryptocurrency has fallen below the critical $114,000 mark, which has provided support for the last six weeks, as indicated in the chart below.
Related: Bitcoin megaphone pattern aims for $260K as BTC signals ‘oversold’
To affirm the uptrend’s strength, BTC price must convert this level into support, states trader and YouTuber Sam Price.
“Bitcoin bulls are effectively defending $109K support,” Price mentioned in a post on X, adding:
“A weekly close above $114K would be significant.”
The long wick beneath $109,000 indicated “strong buying pressure,” highlighting that bulls are actively defending this support area.
Analyst Rekt Capital noted the necessity for Bitcoin to regain $114,000 as support to avoid extended correction phases.
“Transforming $114K into fresh resistance would lengthen the downward period,” the analyst stated in a Thursday X post, adding:
“This has been a cycle of downside deviation, so it fundamentally relies on Bitcoin Weekly Closing above $114K for a bullish outlook.”
Bearish Pressure Aims for $103,000
As Cointelegraph reported, Bitcoin’s price trajectory is contingent on maintaining support above $112,000.
Similar thoughts were echoed by MN Capital founder Michael van de Poppe, who observed Bitcoin trading at $112,800 on Thursday and expressed that the support at $112,000 is “essential” for BTC’s pricing.
“If Bitcoin fails to maintain above $112K, a severe correction across the board may ensue.”
By Friday, Bitcoin had dropped below this support, confirming a bear flag as depicted on the four-hour chart.
A bear flag implies a continuation of bearish momentum, with sellers seizing control.
Note that the price was rejected from the flag’s upper boundary, approximately at $114,000, and has fallen below the lower boundary around $112,000.
The pattern’s measured move target indicates a potential decrease towards $103,700, reflecting a 6% drop from current levels.
The relative strength index remains beneath the midline, supporting the bearish momentum.
Liquidation data reveals bid clusters extending down to $104,000, indicating that BTC’s price may decline further to capture liquidity around this threshold.
This article does not offer investment advice or recommendations. Every investment and trading activity involves risk, and readers should perform their own research before making any decisions.
