Bitcoin Risks 15%-25% Pullback Amid Test of $112K Support
Bitcoin dropped below $115,000 for the first time in nearly two weeks, retesting the $114,500 support before bouncing back toward $117,000. Analysts warn that this rejection from recent highs could signal a corrective phase, with a potential 15%–25% pullback. Primary support now sits at $112,000; a break below could trigger another $4,000 slide to around $108,000, driven by a noted liquidity grab between these levels. On‐chain data shows the Accumulation Trend Score has fallen to 0.20, indicating redistribution rather than accumulation. Meanwhile, weekly charts reveal Bitcoin closed below a long-running bull flag, suggesting a confirmed breakdown. According to technical blogger Rekt Capital, BTC is entering its second “Price Discovery Correction,” historically occurring after similar uptrend peaks in 2017 and 2021. Those pullbacks lasted 1–3 weeks and reached 25%–29%. Traders should watch for confirmation of a rebound above $116,500 or prepare for deeper correction toward critical support.
Bearish
The analysis points to a corrective phase for Bitcoin, driven by failed support tests at $115,000 and a confirmed breakdown below a long-standing weekly bull flag. Historical parallels from 2017 and 2021 show similar second uptrend corrections lasting 1–3 weeks with 25%–29% drawdowns. Current on-chain metrics, including a low Accumulation Trend Score, reinforce bearish sentiment as holders redistribute coins. Immediate price action hinges on whether BTC can reclaim $116,500; failure to do so would likely extend the pullback toward $112,000 or even $108,000. In the short term, traders should brace for further downside pressure and increased volatility. In the medium term, a resolved shallow pullback could set the stage for renewed bullish momentum, but only after key support holds.