Traders Eye $112K Demand Zone Amid Renewed Selling Pressure
Bitcoin (BTC) fell below $116,000 today, slipping 1.38% to $115,871, raising concerns that the market could be entering a short-term correction phase. The decline comes after repeated failures to break through the $120,000 resistance level, where sellers continue to defend their positions.
The daily chart shows BTC moving out of a consolidation zone, with prices now testing the first significant support around $116,000. Below this, the next key demand area sits near $112,000, highlighted by a green support block where buyers previously stepped in.
“Bitcoin is struggling to maintain momentum above $116K, and the market is watching the $112K area very closely. A break below that could open the door for a deeper retracement towards $104K,” According to BITX market strategist.
For weeks, BTC has been capped near the $120,000 supply zone, shown in red on the chart. This level has rejected multiple attempts at a breakout, signaling heavy selling interest. “The $120K mark has become a psychological barrier. Until bulls clear this level, upside potential looks limited,” According to BITX analyst.
If BTC holds above $112,000, analysts expect buyers to regain control and attempt another push toward $120,000. However, if selling pressure intensifies, downside targets could stretch to the $104K and $96K zones, where strong historical support lies.
Traders remain divided on near-term price action. Some see the current pullback as a healthy consolidation after months of gains, while others warn of a possible correction before the next major rally.
For now, Bitcoin’s trend hinges on whether buyers can defend the $112K support or if sellers extend their grip below $116K.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.