Bitcoin News Today: Bitcoin's Fragile Bull Run Hinges on $112K Support Test

Bitcoin's price is approaching a key technical level as it nears a two-year rising trendline, sparking renewed interest among traders and analysts. The cryptocurrency has experienced a volatile week, dropping nearly 2.9% to $110,000 following a sharp pullback from its recent high of over $124,000. The decline has triggered over $411 million in liquidations across the crypto market, with long positions accounting for a significant portion of the losses, according to data from CoinGlass [2].

The pullback has raised concerns over whether Bitcoin can maintain its bullish momentum or if it is heading toward a deeper correction. Analysts are closely watching the $112,000 support level, with some suggesting that a breakdown below this point could lead to further declines toward $105,000. Crypto analyst Kaz The Shadow advised traders to remain cautious and avoid entering long positions at current resistance levels until a clear breakout above $112,000 or a confirmed dip to $105,000 occurs [2]. Michael van de Poppe, another analyst, has projected a potential drop to $100,000, emphasizing that the market remains fragile with downward momentum likely to persist.

While Bitcoin's recent performance highlights its volatility, the broader cryptocurrency market has also been affected. Altcoins such as Ethereum , XRP , and Dogecoin have experienced significant drops, with Ethereum falling below its 20-day EMA and XRP breaking key resistance levels. Dogecoin, in particular, has dropped nearly 4% from its recent support level, raising concerns that it could lose as much as 45% of its current value if bullish pressure fails to materialize [2]. These movements have underscored the heightened sensitivity of the crypto market to shifting investor sentiment and macroeconomic factors.

Bitcoin's recent price action has sparked debate over its role as a long-term investment. Some investors view it as a form of digital gold, offering a hedge against inflation and a store of value in an uncertain economic environment. Others remain skeptical, citing the lack of traditional financial metrics such as earnings reports or fundamental analysis to support price movements. The asset's speculative nature continues to attract both institutional and retail investors, particularly as regulatory clarity and increased adoption by corporate treasuries create more favorable conditions for holding digital assets [1].

Despite these developments, the market remains highly speculative and prone to sharp corrections. Bitcoin's rapid gains over the past year—pushing it past the $100,000 threshold—have led to heightened expectations, but there are no guarantees that the upward trend will continue. Traders are advised to approach the market with caution, considering both the potential for further gains and the risks of sudden downturns. As the price nears a critical technical level, the coming weeks will be crucial in determining whether Bitcoin can consolidate its position or face another wave of selling pressure.

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