Bitcoin’s been on a bit of a rollercoaster lately. After a rough week that saw prices drop by 6.7%, it’s currently hanging around $108,000 – a pretty shaky position, according to some experts. A quick rebound is needed, or things could get worse.
The $112,000 Wall
CryptoQuant’s Julio Moreno, head of research, points to a crucial level: $112,000. This is the “Trader Realized Price,” which basically shows the average cost for short-term Bitcoin holders. It’s a key indicator of whether traders are generally making money or losing it.
Staying above $112,000 usually means bullish momentum. Falling below it? That’s a warning sign of more potential drops. Right now, Bitcoin is below this level, hinting at a possible deeper correction. Moreno warns that if Bitcoin doesn’t quickly climb back above $112,000, selling could accelerate, pushing the price down towards $100,000 – a nearly 8% drop from the current price.
The Bigger Picture
CryptoQuant’s data also shows a wider range of potential price swings. The upper end is around $157,000 (a very optimistic scenario!), while the absolute worst-case scenario puts support near $70,700. However, a crash to that level would likely require a major event like a regulatory crackdown or a full-blown bear market.
Current Market Conditions
At the time of writing, Bitcoin is trading at around $107,960, down about 3.45% in the last 24 hours. Trading volume is actually up, which could mean selling pressure is still strong. Adding to the gloom, the “Bitcoin Bull Index” has been stuck at a very bearish 20 for four days straight – not a good sign for investor confidence./p>
