Bitcoin Support Cracks: Flash Crash to $100K or Rally to $130K?
Bitcoin slipped to about $110,360, down over 1% in 24 hours, as traders focus on a key $112,000 support level. A breach below this zone could trigger a sharper decline toward the $108,695–$110,000 floor and possibly test $105,150 and $101,550 if momentum worsens.
Technically, Bitcoin is confined in a descending channel after failing to hold the $124,450 high. The 50-day SMA at $116,553 now acts as resistance. Momentum indicators are cautionary: RSI stands at 38 (oversold) with no bullish divergence, and the MACD remains negative.
If support at $108,695–$110,000 holds, Bitcoin could rebound to $116,850—where channel resistance meets the 50-day SMA—and then challenge $120,900 and the August peak at $124,450. Conversely, a decisive break below $108,695 may spark a flash crash toward the psychological $100,000 mark, potentially triggering panic selling but also drawing institutional buyers.
Traders face a binary setup: maintenance of support could pave the way to $130,000, while a breakdown risks a six-figure slump.
Bearish
The immediate outlook is bearish as Bitcoin approaches a critical support zone at $112,000 and faces a descending channel. Negative momentum indicators—an RSI at 38 without bullish divergence and a negative MACD—signal limited buying pressure. Historical corrections from failed rallies, such as after the June peak, suggest that a breach below $108,695 could trigger accelerated selling toward $100,000. While a rebound remains possible if support holds, short-term traders are likely to reduce exposure amid heightened volatility. Institutional demand may cushion deeper losses, but the risk of a flash crash dominates the current sentiment, positioning the market for a potential downturn before any sustained recovery.