TL;DR
- The primary cryptocurrency has been in a free-fall state for the past few days, dropping from $119,000 to a multi-week low of under $112,000 hours ago.
- A popular analyst has highlighted the most significant support zones that could be tested next.
The chart above paints a clear picture. Bitcoin peaked in mid-July after an impressive rally and shot beyond $123,000 to mark its latest record. However, it couldn’t maintain such high levels and started to retrace.
It spent the next ten days or so in a relatively tight range between $117,000 and $120,000 with little to no success during its breakout attempts in either direction.
After a fakeout on July 25, which the bulls managed to defend, the actual breakdown started to take place at the end of the month and as August began. BTC was rejected at the $119,000 line and pushed south to just under $112,000 yesterday, which became a new three-week low.
Some of the reasons behind this notable nosedive can be found here , which range from macro tension and uncertainty to investors offloading substantial BTC quantities. Building on the latter, Ali Martinez noted that miners have also been selling lately, dumping more than 3,000 BTC in just two weeks.
Given bitcoin’s crash, which liquidated nearly $1 billion in over-leveraged positions at one point, the analyst also discussed the next key support zones for the asset. They range between $105,000 and $107,000. Later, Martinez reiterated the importance of the $107,100 line as a large accumulation point for BTC’s future price trajectory.
So far, the cryptocurrency has remained well above that level as it currently trades above $113,000. However, more volatility is expected on Monday when all financial markets open. Additionally, Trump has a habit of making important announcements that rattle markets on Sundays, so watch out.
