Bitcoin’s price has been a bit of a wild ride lately. Let’s break down what’s happening.
A Week of Ups and Downs
Last week saw Bitcoin swing wildly, ending up only slightly down (0.07%). It briefly hit $118,000 after the Federal Reserve announced an interest rate cut, but then dipped back down to around $115,700. Trading activity slowed down after the initial surge.
Key Support Levels Under Pressure
Analyst KillaXBT on X pointed out two crucial price levels to watch:
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Weekly Open: Bitcoin recently retested its weekly open at $115,219. Staying above this is a good sign for Bitcoin bulls. Falling below it could signal a bearish trend.
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Fair Value Gap (FVG): There’s a significant gap in the price chart, extending down to $113,355. These gaps often get filled as the price corrects.
KillaXBT suggests that breaking below the weekly open would likely lead to a drop towards the FVG. However, there’s a bit of a cushion – a previous low around $114,367 might offer some support before a deeper fall.
What Happens Next?
The key, according to KillaXBT, is whether Bitcoin can hold above the weekly open and the FVG.
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Positive Scenario: Holding these levels could lead to a retest of $118,000 and potentially even the all-time high of $124,000.
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Negative Scenario: Falling below $113,355 could trigger a drop towards $112,000, $110,000, or even $108,000.
Bitcoin’s Current State
At the time of writing, Bitcoin is trading around $115,700, down slightly (0.98%) for the day. Trading volume is also down. While Bitcoin’s market cap remains massive ($2.3 trillion), its dominance is slipping (57.1%), suggesting altcoins are gaining ground – possibly signaling the start of “altseason.”
