Bitcoin (BTC), the world’s leading coin, is facing a downturn amid the broader cryptocurrency market seeing a bearish momentum. It outcomes occurred when the BTC failed to maintain $123K price level on August 14. The breakdown triggered $800M long liquidations and activated stop-loss orders below $118K.
At the time of writing, BTC is trading at $117,815.46, marking a 50% low in the previous day. Its market volume is down 19% which means investors have exited the market due to low investor and institutional interest.
Bitcoin Faces $123K Rejection, $800M Long Squeeze Shifts Focus To $118.2K Support
A prominent Crypto analyst, BitcoinHyper, has revealed on social media (YouTube), the Bitcoin market failed to maintain $123K level yesterday, which caused the market to experience further decline. After BTC rejection at $123K price level, the market experienced 800 million in liquidation in long positions. This created cascading sell pressure as over-leveraged positions unwound.
He further added that this price moved to the middle of its horizontal trading range, with support identified at $118,200 and stronger support around $116,300. He predicts that the next target to bounce back to hit $118,200, and if it holding $118K to successfully, and next target to be touched $128K.
However, weak U.S. jobs numbers and slowing global credit made investors cautious. July’s Non-Farm Payrolls report showed only 73,000 new jobs, far below the 110,000 expected, alongside sluggish credit growth in major economies, which means less money moving in the economy.
Technical Rejection at ATH Zone (Bearish Impact)
The Exponential Moving Average (EMA) indicator shows the EMA-20, reflecting the short-term trend, at $117,557. The EMA-100 sits at $109,887, signaling long-term bearish momentum. Lastly, the EMA-200 is positioned at $102,000, marking a key long-term support level for BTC.
Furthermore, the Relative Strength Index (RSI) 14 at 50.72 shows neutral momentum, but the Moving Average Convergence Divergence (MACD) histogram (+349) hints at bullish divergence.
In conclusion, if Bitcoin holds the $118K level, it could be poised for the next target of $128K. However, a drop below $118K may open the path toward the $100K support level. The upcoming U.S. CPI (inflation) data on August 16 could sway the market in either direction
Related Reading | Bitcoin Targets $120K As Bulls Regain Momentum Amid Market Optimism
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