Bitcoin tested the resistance at $116,800 but could not execute a breakthrough with strength, and today a correction took place in the price action.
Even after the decline, the lower timeframes still bear positive momentum, and so, thus far, bullish momentum is still intact.
This framework by Van de Poppe suggests a lack of confidence in the short term, where traders are keen on whether the BTC can retake the resistance line or whether it will fall further in the coming days.
$115K Emerges as Critical Support for Bitcoin
The 115k mark has become a crucial support zone for the asset to defend. Should this support be unable to hold up any longer, analysts are cautioning to expect a subsequent decline into the region of around $111,000 to $112,000, at which point a major change in short-term market sentiment should be expected.
Until now, Bitcoin has been following a trend of higher lows, while recent shorter-term rises indicate that there is still buyer interest. However, if the price fails to hold at 115K, it will invalidate that structure and increase the likelihood of a collapse.
Trend Still Intact, But Momentum Wavers
The rejection present at 116.8K does not inevitably entail a reversal but does reflect the potency of resistance in the area. A break above it can be very bullish for Bitcoin.
Bitcoin is in a sweet setup until that time. This means that traders should keep an eye on the price action around $115K because this may be a price that would decide the future trend between the maintenance of the uptrend and a subsequent retesting of lower support levels.
As volatility once again dominates the crypto market, the coming weeks are thought to be crucial in understanding whether Bitcoin will consolidate to stage the next leg of the rally or initiate a more severe part of the correction.
