Bitcoin (BTC) price has slipped below a critical support level, raising concerns among traders about the sustainability of its recent uptrend. The breakdown comes at a time when market sentiment is fragile, with liquidity tightening and uncertainty surrounding broader risk assets. While some see this move as a bearish warning, others argue it could present an entry opportunity if BTC price quickly reclaims lost ground.
Now the question arises whether Bitcoin has begun with a deeper correction or is offering a massive buying opportunity before the next bullish wave.
Another Buying Zone in the Making—Or a Bear Trap?
The market sentiments have become more volatile than the crypto markets, which have been fluctuating with a huge margin. When the BTC price surged high and reached a new ATH, sentiments turned greedy, and as soon as the levels fell below $113,000, traders turned bearish on Bitcoin. The data from Santiment indicates that the crowd began to panic sell soon after the prices dropped. However, historically, these have turned out to be one of the biggest buying opportunities ever.
The above chart shows the market participants often turn greedy when prices surge and bearish in times of pullback. However, whenever the traders fall into the bearish trap and begin to panic sell, the prices have rebounded finely and surged to new highs. Currently, the levels have dropped to the same range that it visited during the US-Iran-Israel conflict in June that turned out to be a buying zone.
“The negative sentiment is good thing for the patient traders who have waiting for an opportunity to buy or add on while there is ‘blood in the streets’ and fear is maximized.”
What’s Next for the Bitcoin (BTC) Price Rally?
The latest pullback has caused trouble for the Bitcoin price rally as the token breaks below the pivotal support range. Moreover, the levels are expected to head towards $110,000 support in the next few days, which may trigger panic among the market participants. Nevertheless, this pullback may attract fresh liquidity, triggering a strong BTC price rally as the star token appears to be at the foothill of a massive explosion.
As seen in the above chart, the BTC price has broken the rising wedge and is squashing all the sellers at the moment. With this, the price may experience an extended descending trend, driving the price close to $110,000. However, in a wider perspective, a breakout from the rising wedge results in a strong rise in the price after experiencing a correction. Therefore, the BTC price seems to be due for a huge upswing in the coming days.
The DMI had undergone a bearish crossover earlier but in no time, the DI displayed a bearish divergence, suggesting the possibility of a bullish crossover. On the other hand, the Supertrend is acting as a support right now and until the price trades above the range, Bitcoin is expected to thrive. In the wider perspective, the Bitcoin (BTC) price remains under the bullish influence with a possibility of forming a new ATH above $125,000 in the next few weeks.
