Early trading saw the price of Bitcoin fall below $114,000, which sparked new worries among traders and analysts who now caution that the top cryptocurrency may decline further before any significant recovery materializes.
This decline coincides with decreased momentum after last week’s brief rally and general market uncertainty. Cointelegraph Markets Pro and TradingView data indicate that Bitcoin had difficulty holding the $115,000 support level, breaking below it during the Asia trading session and displaying few indications of an immediate recovery.
Analysts Focus on Important Support Areas
The significance of approaching daily and weekly closes was underlined by well-known cryptocurrency analyst Daan Crypto Trades, who pointed out that a close below the mid-range of $114,000 to $115,000 would confirm additional weakness. He provided a chart on X that illustrates the loss of momentum in the high timeframes, implying that unless bulls swiftly recover lost ground, any short-term bounce may be limited.
Another well-known trader, Rekt Capital, noted that the market might need to “go lower before it goes higher.” According to historical trends, Bitcoin frequently retests important breakout zones before starting to rise again, he continued. That might entail a return to levels nearer $110,000 in this instance.
Long-Term Attitude Is Still Positive
Major investors’ long-term sentiment seems to be mostly unaffected by the decline. With the Federal Reserve halting rate hikes, the macro environment remains favorable, and on-chain data indicates no notable outflows from institutional wallets or large holders.
However, because volatility is still high and lower support zones may be tested before a more distinct directional move appears, traders are advised to exercise caution shortly.
Also read: Are Corporations Hoarding Ethereum? 550k ETH Acquired in a Month Sparks Supply Shock Concerns
