Bitcoin Struggles to Reclaim Momentum With Plunge Down to $112,000 ‘Likely’ in October

Bitcoin continued to hover near the $122,000 mark on Wednesday, struggling to regain momentum after a sharp correction.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD consolidating after a 4.2% drop from its all-time highs earlier in the week.

The pullback had been anticipated, following a series of record-breaking highs that lacked strong follow-through.

Rapidly rising open interest in Bitcoin derivatives had also fueled speculation of a potential retracement, as excessive leverage often precedes short-term pullbacks.

Market Liquidity Begins to Recover

Analyst Skew described the price action as “very efficient” with “low volatility,” noting on X that larger traders exhibited “predatory” behavior on exchange order books during the correction.

Overnight, liquidity began to return to the market. Data from CoinGlass indicated improving bid- and ask-side activity, hinting at renewed stability after Tuesday’s volatility.

Skew suggested that the market could settle into a “consolidation range” in the near term, as traders reassess key price levels.

Traders Assess Key Support Zones

Analysts are now focused on identifying Bitcoin’s next potential support zone.

Trader ZYN highlighted that the $121,000 to $120,000 range offers limited technical support, suggesting prices could decline quickly if selling pressure increases.

“But just below, around $117K, nearly 190K BTC were last bought. That’s a heavy cluster of recent buyers,” ZYN said. “If we get a pullback into that range, it’s the kind of zone where demand usually shows up — strong buyers defending their entries, new capital stepping in. In short: weak cushion at $121K, but a very real floor forming at $117K.”

Material Indicators, a trading analytics firm, also identified $120,000 as a potential support zone but noted stronger technical support near $114,000, aligning with Bitcoin’s 50-day simple moving average (SMA).

Analysts Expect Further Dip Before Rebound

Crypto analyst Michaël van de Poppe believes the next buying opportunity could appear near $118,000.

“Bitcoin made a new all-time high, which is often a reference for people to be taking profits,” he said. “Slight pullback and we’re approaching my personal area of interest for potential dip buying.”

Many traders see the current correction as a healthy pause in Bitcoin’s broader uptrend, with on-chain data still pointing to strong long-term demand and institutional inflows.

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Source: CryptoSlate