Bitcoin has undergone a sharp revision after losing its $115,000 support level, causing a wave of uncertainty across the market. After weeks of consolidation consolidation was consolidated to a tough extent, BTC collapsed, fostering discussion among analysts about the short-term direction of assets. Some experts warn that Bitcoin could drop even further as investors make profits and emotions become more cautious. Others remain more optimistic, suggesting that the amendment is a healthy pause before BTC attempts to regain its all-time high.
Related readings
Cryptoquant’s important data adds another layer to your analysis. The metric shows that Bitcoin is currently in a “overheated” state, with the rating indicator showing excessive bullish momentum. This suggests that the current integration phase could expand even further as the market acts to reset. Until demand stabilizes and new liquidity flows, Bitcoin could continue to trade in unstable environments, with the $112,000-$115,000 range serving as a key battlefield between the Bulls and the Bears.
With the Federal Reserve monetary policy and global macroeconomic factors still present, Bitcoin’s next major move could depend on a combination of investor market sentiment, institutional demand, and broader risk appetite in the coming weeks.
The flow model from bitcoin stock shows an overestimation
Top analyst DarkFost recently shared insights on X and highlighted the importance of Bitcoin Stock to Flow Reversal (S2F) charts as a reliable indicator for assessing Bitcoin valuation cycles. According to DarkFost, if the S2F metric exceeds the value of 3, it usually indicates that Bitcoin is in the overheating phase, indicating a high possibility of a market correction. Currently, the S2F value is approaching this critical threshold, urging DarkFost to warn investors that locking profits before deeper corrections unfold could be the best moment.
DarkFost’s analysis points to a historical pattern where similar S2F measurements precede a significant price drop. In September 2021, Bitcoin fell from $63,500 to $30,800 after S2F metrics crossed into the overvalued zone. Again, in November 2021, BTC crashed from $67,000 to $15,800 following the peak S2F signal. Recently, in March 2024, Bitcoin has rapidly revised its way from $73,000 to $54,000 after entering overheated territory.
Related readings
Designed for long-term market participants, this preset alert system serves as a strategic tool to enable investors to navigate the unstable cycle of Bitcoin. While the current revisions may seem abrupt, DarkFost emphasizes that such pullbacks are essential for the market to reset and build a sustainable foundation for future growth. Investors are required to be cautious and closely monitor the S2F chart as Bitcoin navigates this important stage.
BTC is struggling to regain the $115,000 level
Bitcoin is about to recover after the recent decline and is currently trading around $115,019, as shown on the 8-hour chart. The price was able to bounce off the $112,000 support zone, but faced strong resistance at the $115,724 level, which previously served as key support in the two-week integration range in July.
The simple 50-day and 100-day moving averages (SMA) are placed just above the current price, with an increased overhead resistance. The 200-day SMA, which costs around $110,677, continues to provide solid support, leaving the overall uptrend for now. However, BTC will need to regain the $115,724 level and integrate it onto it to regain bullish momentum.
Related readings
The volume was relatively low during recent bounces, suggesting there are no strong purchase convictions. If Bitcoin couldn’t decisively surpass the $115K resistance, there’s a risk of returning to test the $112K zone again. Conversely, a successful breakout of over $115,724 could pave the way for retesting the $122,077 record high resistance.
Dall-E special images, TradingView chart
