Bitcoin’s recent price action hints at a possible downturn. While it briefly climbed above $120,000, bearish pressure remains. This suggests a price correction could be on the horizon.
Signs of Exhaustion
Crypto analyst TehThomas points to a key rejection level around $122,000. This suggests market exhaustion, with profit-taking sellers outweighing buyers. The confluence of this rejection with 4-hour chart data strengthens the bearish signal, potentially leading to a significant price drop.
The Fair Value Gap and Price Targets
An unfilled “fair value gap” exists above $112,000. Historically, these gaps tend to close before bullish trends resume. This makes $112,000 a likely initial target for a price retracement. Furthermore, the recent price surge trapped late buyers, leading to liquidations and adding to the downward pressure.
A Potential Crash to $110,000?
TehThomas predicts a potential crash to as low as $110,000 to fill the fair value gap. However, he views this as a potential setup for another upward price movement afterward.
