Bitcoin Price Drops 12.7% to $108.7K, Tests Bull Market Support
Bitcoin price has fallen 12.7% from its recent high, dipping to a local low of $108,700. This correction reset key momentum indicators. The Stochastic RSI and other short-term metrics now sit at oversold levels. A Binance futures liquidation heat map highlights liquidity clusters at $108,464 and between $111,000–$112,000. On the daily chart, Bitcoin rests on a major horizontal support tied to its bull market structure. A break below this level would signal broader weakness, though a bounce seems likely. Weekly indicators remain bearish but lag price action. If Bitcoin recovers, the MACD could avoid a bearish crossover, and the Stochastic RSI may begin to climb by week’s end. Traders should watch support levels and momentum signals for signs of a rebound.
Bullish
The 12.7% drop to $108,700 reset oversold momentum indicators, creating a potential entry point for buyers. Historical patterns show that corrections of similar size have often preceded renewed rallies in Bitcoin. The presence of strong horizontal support on the daily chart adds conviction that a bounce is likely. Although weekly indicators remain bearish, they lag actual price action; a rebound would quickly shift them back to neutral or positive territory. The identified liquidity pockets between $108,464 and $112,000 also suggest targeted buy orders could accelerate a recovery. In the short term, traders may see a relief rally; in the medium to long term, holding above this support level could reinforce the ongoing bull market structure.