Bitcoin Price Plunges Below Key Support: Is a Deeper Decline Imminent?

Bitcoin has recently witnessed a significant downturn, extending losses after falling below the critical $113,800 mark. The cryptocurrency is currently consolidating these losses, with market analysts keenly watching for a potential further decline that could see it test the $110,500 support zone in the near term.

Bitcoin's Struggle with Resistance

After failing to initiate a recovery wave and staying below $115,000, Bitcoin entered a bearish trend, breaking through key support levels at $113,500 and $113,000. This downward momentum pushed the price to a low of $111,111 before it began consolidating losses. A minor recovery attempt saw the price move above the 23.6% Fib retracement level from the recent decline, but a bearish trend line with resistance at $114,000 continues to cap any significant upside.

What Lies Ahead: Key Levels to Watch

For a bullish reversal, Bitcoin needs to decisively clear the $114,000 resistance zone and the bearish trend line. Success here could propel the price towards $115,000 and potentially $116,500, with the next major barrier at $117,250. However, if Bitcoin fails to overcome the $114,000 resistance, a fresh wave of declines is likely. Immediate support lies near $112,000, followed by a major support at $111,250. A break below this could see the price drop towards the crucial $110,500 zone, and further losses might push it down to $108,800 or even $107,500, signaling a stronger bearish momentum. Technical indicators reinforce this cautious outlook: the hourly MACD is gaining pace in the bearish zone, and the hourly RSI for BTC/USD remains below the 50 level, indicating prevailing selling pressure.