Bitcoin Reaches Critical Support Level, Analyst Warns of Potential Breakdown
Bitcoin is at a critical support level in its current cycle, termed as a "fork in the road" by analyst Dom (@traderview2). If Bitcoin fails to stabilize and reclaim key levels, it may experience a significant structure break for the first time.
- Current support levels are crucial; failure to maintain them could lead Bitcoin to drop to mid to low $90,000s.
- Dom does not foresee a classic crypto winter or 80% crash but anticipates a controlled retrace if support fails.
- The key area to watch is the $111,000–$114,000 region. A breakdown might target $98,500, linked to the 12-month rolling VWAP.
- Market behavior has changed: previously, Bitcoin quickly bounced from support, which is no longer happening.
- Order flow shows hesitation rather than urgency, indicating potential top formation due to reduced buying interest.
Liquidity concerns are evident on major exchanges, with minimal bid interest and significant sell pressure, indicating potential for rapid price declines if support breaks.
- Bitcoin's market dynamics have evolved, with institutional involvement leading to steady growth rather than speculative spikes.
- This shift suggests that the downside will also be muted, with less likelihood of panic selling.
Bitcoin is currently trading at $110,280.
