Bitcoin Market Outlook: $105K-$110K Zone Crucial for Upcoming Moves

• Bitcoin drops 1% in 24 hours, marking a 12% fall from its mid-August high amidst broader market weakness.
• Investor sentiment turns cautious, with the Fear and Greed Index falling to 43, reflecting growing uncertainty.
• A sudden sell-off and failure to hold $117,000 highlights Bitcoin’s ongoing volatility and market instability.

Bitcoin is trading at a seven-week low, down 1% in the past 24 hours. The cryptocurrency fell 4.60% in the last week, trading 12% below its all-time high in the middle of August. This loss follows a bigger market pressure, as Bitcoin has failed to retain gains following a short spurt. The decline has made most investors apprehensive

The deeper cryptocurrency market is similarly struggling. The overall market capitalization has dropped by 2%, to settle at $3.79 trillion. Investor sentiment is fading away, as the Fear and Greed Index dropped to 43, which is in the neutral zone. This is also a marked decline compared to 53 the previous week, indicating that traders are looking to be cautious.

Source: Alternative

Bitcoin Pullback: Surge Fades into Consolidation

Bitcoin had a little bump on Friday, topping at $117,000. The jump was fueled by dovish remarks by Federal Reserve Chair Jerome Powell. The potential of reduced interest rates greets the market positively, with Bitcoin rising by 3.5% and US stocks recovering. But BTC was not able to hold on to the price or was unable to keep it up but instead slipped into its consolidation range.

Also Read: Bitcoin Targets $120,000 as Metaplanet Expands Holdings Despite Price Dip

Daan Crypto Trades has noted that Bitcoin has gone out of the range. BTC is currently quoted at former highs and the consolidating areas. The micromarket format has revealed lower lows and lower highs condemning to a bearish trend. As analysts monitor the market, there are levels to watch that, in position, would determine the direction to go.

Source: X

It is worth noting the 200-day moving average and also the Fibonacci retracements. The price of Bitcoin will continue to be held between 105,000-110,000 in the next few weeks. A further fall notably below the level of $100,000 will be a sign of more serious problems and may trigger further decline in the prices. 

Glassnode pointed out that the average purchase price of Bitcoin by the newest 1-3 month cohorts is now about 110,800. This is because this price point has been a critical one historically. BTC is usually heading into a bear market when it reaches below this point.

Bitcoin Faces Critical $110K Mark Amid Liquidations

Glassnode has been following the relationship between the price of Bitcoin and the expense of new investors. The chart of the firm indicates that price movements that move below the cost of new investors are mostly associated with the price decline. The orange line is the cost of new investors, and the black one shows the price of BTC. A correction is also likely to happen when the price crosses below.

Bitcoin also experienced the biggest long liquidation of the recent months on Monday. The decline was caused by a sudden downward movement prior to which more than 150 million long positions were liquidated. On Tuesday, BTC temporarily exceeded the price of 108,600 dollars and came back a little. Such an event lays bare the risks, especially in such volatile conditions in the market.

Source: Glassnode

The short-term response above the $110,800 mark is deemed necessary, as it can support market stability in BTC. If BTC manages to recover this price point, then it will have a chance of rebuilding investor confidence. Nevertheless, the refusal to do it might result in additional losses in the short-term perspective. The market is being anxious awaiting stabilization in terms of making decisions to take major actions.

The latter points to the upheavals of the cryptocurrency trade, which are found in the recent weaknesses experienced by BTC. As the overall market stresses, the major price observances are well followed by investors. It is doubtful whether BTC is going to recover or still continue to slip. The current feeling is caution on the part of traders who are awaiting more signals.

Also Read: Bitcoin Supply Drops, Altseason Loading: Why the Next Few Months Matter