Bitcoin Price: Potential Drop to $111K?
Bitcoin has maintained levels close to its all-time high, but indicators suggest underlying bearish sentiment. A recent surge to new peaks created gaps that analysts believe need to be filled before another rally can occur. This correction could see Bitcoin revisiting previous all-time high levels.
V-Shaped Pattern Indicates Bearish Control
Crypto analyst Youriverse pointed out that Bitcoin formed a V-shaped pattern after exceeding $123,000. This pattern often signals a shift towards sellers controlling the market, as profit-taking increases.
The analyst also noted the creation of two Fair Value Gaps (FVGs) on the 4-hour chart. One FVG has already been filled with the retest around $119,000-$120,000, which resulted in a rejection. The remaining 4H FVG sits near previous highs, around $111,000.
According to the analyst, the second 4H FVG is just above $111,000, aligning with previous resistance levels. This alignment makes the level a potential target, especially as investors take profits. Increased selling pressure could drive the price down to this level.
Additionally, Bitcoin formed a CME gap over the weekend. The retracement in price suggests this gap is being filled around $114,000-$116,000. If the CME gap is filled, it increases the likelihood of the second FVG at $111,000 being filled as well.
Bullish Indicators Still Present
Despite bearish signals from the gaps, Bitcoin still shows some bullish momentum. Rising volume alongside price increases indicates strong buyer activity. Data from Coinglass shows daily volume averaging over $100 billion this week.
The Bitcoin Fear & Greed Index remains in “Greed” territory and has not yet reached “Extreme Greed,” which typically marks a market top. Open interest is also near all-time high levels, potentially leading to a price surge before any correction.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Trading cryptocurrencies involves substantial risk of loss. Codeum provides smart contract audits and security consultations to ensure the safety of your blockchain projects.