Bitcoin Price Movements and Market Reactions
Bitcoin’s price action has somewhat slowed down following an extraordinary rise to $122,838 on July 14th. This surge was marked by a week of enthusiastic trading and significant buying activity, allowing BTC to swiftly break through various resistance levels. But after reaching that peak, it experienced volatility, which led to a decline to around $116,000, with Bitcoin now trading between $117,000 and $118,500.
Crypto analyst Melikatrader94 has issued a bearish forecast. On the TradingView platform, this analyst shared a technical analysis suggesting Bitcoin might drop to $113,000.
QML Zone Rejection suggests a potential downtrend to $113,600
As per the hourly candle analysis, Melikatrader94 indicates that Bitcoin is currently exhibiting a Quasimodo Level (QML) structure. This QML structure is described by having three peaks in bearish scenarios or three troughs in bullish ones, with the central one being most influential. The prediction suggests that if Bitcoin enters the $119,000-$121,000 zone, it will likely attract sellers.
The quick rejection following the all-time high has confirmed a bearish shift in structure. Now, the momentum seems to favor the downside, particularly after significant price movements away from previous support levels.
Analysts pointed out, “BTC’s rejection from the QML zone along with the sell-offs indicate that the Bears are in control.”
While Bitcoin remains under the QML zone, the bearish outlook prevails, with the next crucial support sitting at $113,600. This level could act as a bounce point or temporary consolidation if prices continue to drop. Still, before reaching that support, a pullback around $116,000 seems possible.
As Bitcoin’s prices decline, altcoins face pressure
A potential drop in Bitcoin to around $113,000 could severely impact altcoins, some of which have recently enjoyed substantial gains. These altcoins typically follow Bitcoin’s trend, and they’re already starting to show signs of stress as BTC struggles to maintain its upward trajectory.
XRP, for example, managed to surpass an 8-year-old resistance, achieving a new all-time high of $3.65. Yet, the rally appears to be faltering, with early indications of a correction towards the $3.45 zone. Ethereum, which climbed in tandem with Bitcoin’s rise to $122,000, had briefly surpassed $3,600 before settling down in a consolidation phase below $3,500.
If major cryptocurrencies dip below $116,000 in the coming days, it might trigger a sell-off in altcoins, leading to increased selling pressure overall. However, it’s worth noting that some major altcoins may eventually diverge from Bitcoin’s trajectory, potentially ushering in a season where they outperform Bitcoin for a time.
