Last weekend, Bitcoin found support around $118,000, which could be the basis for a potential rebound. At the same time, a breakout below this level could lead to a longer correction in the cryptocurrency’s rate.
There is uncertainty in the market, and key support levels will determine the future direction of Bitcoin. Although the overall trend remains bullish, intraday weakness is increasing volatility.
Cryptoanalyst BitcoinHyper noted that Bitcoin pulled back, encountering resistance around $123,000. This, in turn, resulted in the liquidation of over $800 million in long positions. Since then, the price has moved to the middle of its horizontal trading range with support at $118,200 and stronger support around $116,300.
The analyst emphasized that the 4-hour chart still reflects a bullish trend. However, the lower low on the hourly chart indicates short-term weakness. The $120,000 level remains a key support level. A hold above it could open the way to $128,000, while a move lower could lead to further decline.
BTCUSD Hourly Chart. Source: TradingView
Co-founder BitMEX Arthur Hayes does not rule out that Bitcoin may fall to $100,000, which may be influenced by macroeconomic factors.
Hayes pointed to worsening economic data, including the July U.S. nonfarm payrolls report, which showed an increase of 73,000 jobs versus the 110,000 expected.
Hayes’ recent sales of ETH, Ethena and Pepe while holding USDC worth $22,95 million indicate preparation for potential volatility. He believes that if there is a broad market decline Bitcoin will reach the $100,000 mark, and Ethereum — approximately $3000.