Bitcoin has experienced a significant downturn, falling below the crucial $118,000 level, prompting concerns about renewed selling pressure and potential market stall in recovery. The cryptocurrency witnessed a more than 2% decline over the past 24 hours, currently trading around $115,200 on Monday. This drop is attributed to a combination of factors including weak US economic data, declining investor confidence, and lowered expectations for Federal Reserve interest rate cuts. These factors have created a bearish sentiment, casting doubt on Bitcoin’s immediate rebound potential. 💰 📉 📉
The critical $118,000 level served as a significant support point for recent buyers of the cryptocurrency, with over 1.69 million BTC held at this threshold, according to CryptoQuant analyst Crazzyblockk. Failing to stay above this key mark could shift sentiment among investors towards selling and amplify losses.
Analysts warn that if Bitcoin fails to regain its position above $118,000, the market could face a broader correction as confidence weakens. On the other hand, a successful rebound above this level would serve as a signal of positive momentum in the trend.
The situation surrounding Bitcoin’s current price movement highlights how critical this threshold is. It has now shifted from support to resistance, with the future direction of the market likely depending on whether Bitcoin can overcome this hurdle or if further downward pressure unfolds.