As of 2025, Bitcoin (BTC/USD) is experiencing notable fluctuations, recently trading around $116,000 after a brief rejection at resistance levels close to $122,000. Analysts are now closely watching a critical support level at $112,000, which may serve as a pivotal point in determining the cryptocurrency’s trajectory. The market’s response to this level could either stabilize the current prices or push Bitcoin lower.
Pseudonymous crypto trader Ali recently highlighted the formation of a deviation pattern following the price rejection, which often signals potential weakness in the market. He noted that Bitcoin is currently trading within a range between $122,000 and $112,000. A failure to maintain support at the lower band could expose a liquidity gap down to $108,000. Ali stated,
“$112,000 must hold because on-chain data shows a liquidity gap between $112,000 and $108,000. Losing that support could quickly trigger a sharp $4,000 drop.”
Furthermore, Ali pointed out that the Accumulation Trend Score has decreased to 0.20, indicating a trend of redistribution by holders rather than new accumulation at current levels. This insight suggests that market sentiment may be shifting, prompting traders to reevaluate their positions.
In contrast to Ali’s caution, another prominent trader, Cheds, indicated that Bitcoin’s recent price action may mirror the final stages of the 2021 bull market. In a YouTube video, he referred to Bitcoin’s latest reversal as an “upthrust,” characterizing it as a failed breakout often perceived as a bull trap. Cheds elaborated,
“It’s when you break a resistance level and you come back [down] and fail to hold. That’s the upthrust,”
emphasizing a significant red candle on August 14 as a warning signal. This pattern is reminiscent of Bitcoin’s unsuccessful attempt to maintain levels above $69,000 in 2021, which eventually led to a prolonged bear cycle.
Despite these bearish indicators, not all market observers view the current correction negatively. Jan Happel and Yann Alleman, co-founders of Glassnode, argue that the recent price movements are more likely a shakeout before the next upward leg. They noted on social media,
“Market makers are moving large amounts of ETH and BTC onto exchanges, likely using this short-term market weakness to walk prices down. This is often a shakeout before the next leg higher. Use the pullback to build positions and catch entries you missed.”
As of the latest update, Bitcoin is trading at $116,040, reflecting a decline of nearly 1.7% on the day. Traders are now focusing on the $112,000 mark as a crucial dividing line between a contained correction and a more extensive market reversal. The coming days will likely reveal whether the market stabilizes or if deeper corrections ensue.
For those seeking to navigate the complexities of cryptocurrency trading, tools like Benzinga Rankings provide vital metrics and insights. These resources can help traders make informed decisions in an ever-evolving market landscape.
For further information, visit Benzinga’s official website at Benzinga. All rights reserved 2025.
