BTC price action turns weaker after the Wall Street open, with Bitcoin market participants bracing for lower levels despite bullish US macro data.
Market Update
Key points:
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Failure to reclaim $120,000 could spell trouble for Bitcoin bulls.
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Whales appear to be offloading at local highs, creating further hurdles to price upside.
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Short-term holder cost bases feature as local support lines of interest.
Bitcoin () gave up attempts to crack $120,000 at Tuesday’s Wall Street open as traders stayed split on market strength.
Bitcoin price weakness sparks sub-$110,000 targets
Data from and showed BTC/USD returning below $117,500, now under its daily open.
The pair had earlier in the day, despite signs of fresh BTC sales by asset manager Galaxy Digital.
US sellers subsequently stepped in, and commenting on the current market setup, many traders warned that any downside could snowball quickly.
thinking we about to start the C wave here to $111,000
— BigMike7335 (@Michael_EWpro)
“We’ve got bear divs, everyone expects up, would make more sense to push down before a potential move higher,” popular trader Roman wrote in part of his on X, having earlier given a downside target of $108,000.
Trading resource Material Indicators likewise saw the potential for new lows, warning that whales were distributing.
“If $116,750 doesn’t hold, the $110k range may come into focus quickly,” it X followers Monday.
“Looks to be a clean triple tap developing on $BTC here,” trader Credible Crypto , describing the area around $15,700 as being key to hold.
Profit-taking still offers “very positive signs”
Tuesday’s US job openings helped shore up the bull case for risk assets and crypto.
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In one of its “” blog posts, analytics platform CryptoQuant also flagged improving consumer confidence data as a reason for optimism.
“Today’s JOLTS data, coming in slightly below expectations, provided a ‘not too hot, not too cold’ signal for the markets. This creates a positive environment for risk assets,” it summarized.
“Additionally, the better than expected Consumer Confidence data signals a reversal after a 6 month decline, showing growing investor optimism about the future.”
CryptoQuant argued that BTC price upside remained intact for the future, thanks to an overall lack of sell-side pressure.
“Even as the price approaches the $120,000 level, we are not seeing a massive profit realization event on the Net Realized Profit and Loss (NRPL) chart that could signal a top,” it continued.
“This is a very positive sign. It means investors are not rushing to take profits, showing strong conviction that the move will continue.”
CryptoQuant argued that the cost basis of various cohorts of short-term holders (STHs) should function as support in the event of a drawdown.
“Solid Supports (Realized Price): In potential pullbacks, the cost bases of short-term investors at the ~$115.7K and ~$105K levels are ready to act as strong, tested support zones,” it concluded.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
