Key Takeaways
- BTC’s price fails to defend its all-time high as price trades back into a key demand zone.
- Market sentiment for Bitcoin remains bullish despite recent price retracement as altcoins suffer.
- BTC’s price must defend $112,000 and $113,000 support zone to prevent a lower price crash.
The past few weeks saw the price of Bitcoin flying to an all-time high of $124,000, gaining strong market buzz of a potential rally towards a region of $130,000 and subsequently $150,000.
However, things have not gone as expected based on market expectations and predictions from top crypto experts and investors.
Following a strong price rally towards $124,000, hitting a historical high and gaining strong bullish demand, the price of Bitcoin (BTC) in the last few days has struggled as the price faced a minor sell-off towards the key demand zone of $113,000.
Investors and traders keep a close eye on the next price move for the second-largest crypto asset by market capitalization.
Bitcoin Daily Price Action and Market Sentiment
Source – Bitcoin MVRV from Glassnode
According to on-chain market analyst Ali Martinez, the price of Bitcoin could face a strong market retracement towards lower price points of $95,000 if the price fails to protect its key support zone around $112,500, as a higher timeframe for BTC needs to defend its price.
He further suggests that the BTC MVRV indicators do not suggest a bullish continuation, as the price would be looking to fill buy orders at lower price points.
This analogy of BTC’s MVRV indicator corresponds with higher timeframe price action of price retesting $113,000 support on the daily timeframe before a bullish rally to the upside in the coming days.
While Bitcoin’s price suffered a retracement, altcoins have struggled to maintain bullish price action to the upside. But with the price of BTC looking good on the key demand zone, price would be expected to rebound with altcoins.
Price Analysis on 4-Hour Chart
Source – Bitcoin 4HR Price Chart from TradingView
Following the market crash from $124,000, the price of BTC retraced into the key demand zone around $112,000 to $113,000, as the price has shown strong defense around this zone.
The price of BTC is expected to reach higher highs to confirm a change in trend to the upside on the 4HR timeframe. If the price fails to defend this zone, we could see the price sell to lower price regions.
Despite current market price action, the overall market trend for Bitcoin remains bullish as price maintains its bullish structure on the higher timeframes.
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