Bitcoin is trading at a pivotal level after losing momentum from the $120,000 zone and falling into deeper volatility. Prices are currently testing a support level of $112,000, a key zone for the Bulls to defend against bearish pressure. The broader trends remain constructive in the long run, but the short-term outlook is leaning towards weakness, and the momentum indicators are leaning towards the negative.
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Analysts emphasize this moment as a potential inflection point in the market. A strong defense of the current level will reset your emotions and allow Bitcoin to integrate before another breakout attempt. However, failing to exceed $112K can cause sharper fixes, paving the way for a deeper level of support.
In addition to his careful tone, Cryptoquant’s research director Julio Moreno shared new data indicating that the Cryptoquant Bull Score Index has shifted to a neutral signal. This shift emphasizes that sales pressures have not been fully taken over, but the market is no longer in a clear bullish territory. The next few days will be critical in determining Bitcoin’s short-term trajectory.
Be careful with the Bitcoin indicator
Bitcoin’s Bull Score Index, head of Julio Moreno, Cryptoquant’s research officer, has moved from the “bulging cooldown” phase to the “neutral” phase. The index, which uses a combination of trading flow, investor behavior, and derivative data to track overall market strength, has decreased from 70 to 50. The move has weakened bullish momentum, and Bitcoin has become more balanced between buyers and sellers.
“For risk management purposes, it indicates that even softer indexes could lead to lower prices.” This means that while neutral zones do not mean a confirmed downtrend yet, additional degradation may increase the likelihood of deeper corrections. Therefore, traders are closely monitoring future sessions. Because price actions around the support zone between $112,000 and $115,000 are important in shaping short-term directions.
The broader context remains constructive. Bitcoin has been a stable uptrend since 2023. This is a cycle that has already brought on massive profits and has driven assets to an all-time high of over $124,000 earlier this month. Many analysts argue that the market is currently in the final stages of this bull run. There, it argues that volatility is usually rising, and investors’ emotions are split between expectations of continuity and warnings of fatigue.
Once the month is over, global macroeconomic factors, including interest rate policies, institutional inflows and liquidity conditions, play a critical role. If Bitcoin retains its support and the foundation remains strong, this neutral stage could represent a healthy pause before the next upward movement. Conversely, if weakness continues, the market may indicate the onset of a deeper integration phase.
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Price Action: Testing critical support levels
Bitcoin is currently trading around $112,837 after a sharp drop from an all-time high of nearly $123,217. The daily chart shows that BTC is below the 50-day SMA ($116,158) and is currently testing 100-day SMA ($111,224) as support. This level has become an important line of defense for the bull.
The $123,000 regional refusal highlighted a strong resistance and failed several breakout attempts. This structure suggests that BTC has entered the integration phase, with zones ranging from $111,000 to $116,000 serving as an immediate range. A definitive breakdown of under $111K could head towards a 200-day SMA ($100,597). Many analysts see it as the ultimate support for this cycle uptrend.
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Also, recent candles show lower heights and lower lows, so momentum indicators are consistent with weakening bullish pressure. However, if you exceed the 100-day moving average, the bull case will be strengthened, potentially setting a rebound to $118,000, and ultimately retesting $123,000.
Dall-E special images, TradingView chart
