Bitcoin Faces Potential Drop to $111,000 Before Rally to $120,000
Bitcoin is currently experiencing bearish price action and has left two Fair Value Gaps (FVGs) that could indicate its next movement. According to analyst TehThomas, investors should anticipate uncertain price fluctuations as Bitcoin needs to address multiple liquidity levels.
The Two FVGs Impacting Bitcoin Price
- The first FVG is above $117,000, which is expected to be targeted first due to its high liquidity. This may trigger stop losses and trap late buyers.
- The second FVG lies just above $111,000, below recent lows, and filling this gap is anticipated after a potential breakout at the upper level. This retracement is viewed as bullish as it meets demand.
- A move upwards followed by a retracement to $111,000 may clear internal liquidity, positioning Bitcoin for a significant upward movement.
Future Projections After Clearing Internal Liquidity
- After clearing internal liquidity, the descending trendline will be critical for Bitcoin's continued rise.
- For upward momentum, Bitcoin must interact with the upper imbalance of the trendline before potentially dropping again.
- Targets include previous liquidity build-ups, potentially pushing Bitcoin toward $120,000.
- Sustained higher prices are unlikely until both FVGs have been addressed.
