Bitcoin Must Hold $105.7K Support or Risk $95K Drop
Matrixport’s analysis identifies the 21-week moving average at $105,696 as the key support level for Bitcoin. Bitcoin has traded narrowly between $114,000 and $115,000 in early August, while its 50-day and 200-day moving averages remain bullish. A recent dip below the 21-day moving average ended the short-term rally. Immediate support stands at $112,000; a break below could push Bitcoin down 24–26% toward $95,000 based on weekly RSI. Conversely, holding above the 21-week moving average may fuel a renewed rally toward $119,000. Market sentiment, tracked by the Fear & Greed Index, has shifted back into greed. Macro factors—Federal Reserve policy, potential spot Bitcoin ETFs, and global regulation—will influence capital flows. Traders should monitor these moving averages and key support levels closely. Strict risk management and position sizing remain essential.
Neutral
While Bitcoin’s 21-week moving average at $105,696 offers strong support and maintains a bullish bias as long as it holds, recent weakness below the 21-day moving average and the warning of a potential 24–26% drop highlight significant downside risks. The conditional outlook—bullish if key supports hold, bearish if they break—creates a mixed market environment. In the short term, traders may see renewed buying around the 21-week moving average. However, a breach of the $112,000 level could trigger deeper corrections. Macro factors such as Fed policy and spot ETF approvals add further uncertainty. Overall, the news presents both bullish and bearish signals, resulting in a neutral impact on Bitcoin trading sentiment and price direction.