TLDR
- Bitcoin price dropped to $112,656, marking lowest level since August 3 and 8.5% decline from $124K highs
- Retail trader sentiment flipped from bullish to ultra bearish in 24 hours, creating most negative social media sentiment since June
- Technical charts show head-and-shoulders pattern with neckline support at $112,000 and potential $108,000 downside target
- Bitcoin broke below ascending triangle and 50-day moving average at $115,870, turning it into resistance
- Historical bull market corrections in 2017 and 2021 suggest current pullback follows normal cycle patterns
Bitcoin price fell to $112,656 during Tuesday trading sessions. This represents the lowest price point since August 3 for the leading cryptocurrency.
The Bitcoin price decline marks an 8.5% drop from recent all-time highs above $124,000. Total cryptocurrency market capitalization has fallen below $4 trillion as selling pressure spreads across digital assets.
Retail cryptocurrency traders completely reversed their market outlook within 24 hours. Blockchain analytics firm Santiment reported this shift created the most bearish social media sentiment since June 22.
The previous June bearish period coincided with Middle Eastern conflict fears that triggered widespread crypto selling. Santiment noted retail traders typically show more emotional responses to Bitcoin price movements compared to long-term holders.
Bitcoin Fear and Greed Index declined to 44 out of 100, entering “Fear” territory. This reading matches the lowest levels seen since late June 2024.
Bitcoin Price Technical Analysis Shows Breakdown
Bitcoin price broke below an ascending triangle pattern after consolidating for several weeks. The breakdown also pushed Bitcoin below its 50-day simple moving average at $115,870.
Technical analysis reveals a developing head-and-shoulders pattern on daily charts. The pattern shows neckline support at $112,000, with potential downside targets at $108,000 if this level breaks.
Extended Bitcoin price targets point toward $105,150 should selling pressure continue. Multiple bearish candles have formed, resembling early stages of a three-crows pattern that typically signals sustained downward momentum.
MACD indicators turned negative while RSI sits at 41. These readings suggest additional downside potential before Bitcoin reaches oversold conditions that often trigger price bounces.
Historical Bitcoin Bull Market Patterns
Previous Bitcoin bull market corrections provide context for current price action. Similar pullbacks occurred during comparable cycle stages in 2017 and 2021.
September 2017 saw Bitcoin correct 36% before surging to new peaks three months later. September 2021 featured a 23% correction followed by fresh all-time highs later that year.
If 2025 follows historical patterns, Bitcoin could potentially decline to $90,000 next month before recovering to new highs. This would align with typical bull market correction depths.
Institutional buying continues despite near-term selling pressure. Companies like MicroStrategy and Metaplanet maintain accumulation strategies during Bitcoin price dips.
Bitcoin Price Prediction
Bullish scenarios require recovery above $116,150 to trigger bounces toward $120,900. Breaking $124,450 could enable retests of higher resistance levels.
Bearish cases focus on breaks below $112,000 support, which could accelerate selling toward $108,000 targets.
The structural Bitcoin bull trend remains intact with higher lows since June. Small-bodied candles at current levels indicate indecision rather than capitulation.
Bitcoin currently trades around $113,400, down over 2.75% in 24 hours as markets process the technical breakdown.
