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$114,553 0.10%
ethereum
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bitcoin
Bitcoin (BITCOIN)
$114,553 0.10%
ethereum
Ethereum (ETHEREUM)
$3,660 2.91%
binancecoin
BNB (BINANCECOIN)
$762.75 0.85%
solana
Solana (SOLANA)
$168.99 3.77%
ripple
XRP (RIPPLE)
$3.05 2.12%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000012 0.27%
pepe
Pepe (PEPE)
$0.000011 1.78%
bonk
Bonk (BONK)
$0.000026 -3.92%
bitcoin
Bitcoin (BITCOIN)
$114,553 0.10%
ethereum
Ethereum (ETHEREUM)
$3,660 2.91%
binancecoin
BNB (BINANCECOIN)
$762.75 0.85%
solana
Solana (SOLANA)
$168.99 3.77%
ripple
XRP (RIPPLE)
$3.05 2.12%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000012 0.27%
pepe
Pepe (PEPE)
$0.000011 1.78%
bonk
Bonk (BONK)
$0.000026 -3.92%
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Bitcoin Price Rebounds to $114K as Sentiment Shifts From Extreme Greed to Neutral

Highlights:

  • The Bitcoin price is down almost 1% to $114,440, as trading volume skyrockets by 12%.
  • Crypto analyst says BTC sentiment has shifted from extreme greed to neutral.
  • According to Glassnode data, if the $111,000 support level cracks, the next key demand zone sits around $ 90,000, as per the pricing band.

The Bitcoin price is down by almost 1% to $114,440, as trading volume surges 12% to $55.62 billion. The recent spike in trading volume indicates a rise in market activity, despite a recent dip from the $ 119,000 highs. Meanwhile, according to popular analyst Ali Martinez, the sentiment on Bitcoin has taken a significant turn in the market, shifting from extreme greed to neutral, as indicated by the Fear & Greed Index. 

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There has been a historical trend that times of Extreme Fear are good times to buy in the cryptocurrency market. When this happens, a key pullback or correction is likely to occur in the market, thus making it a good entry point for long-term investors.

Bitcoin Price Breaches Below the Consolidation Channel

The token plunged as much as 0.12% intraday, hitting a low of $114,440 after reaching its recent multi-year peak of $123K. The sharp decline occurred as many traders using high leverage were forced out of their positions, resulting in $37.75 million in BTC trades being liquidated, primarily long trades.

In total, BTC saw $37.75 million in liquidations, with $21.92 million coming from long trades. Across the entire cryptocurrency market, liquidations totaled $281 million in the last 24 hours, with Ethereum leading the wipeout at $102.52 million.

Crypto market liquidations across all exchanges. Source: CoinGlass

Such liquidations are typically indications of increased volatility and market strain, which can also lead to price indecision and shifts in sentiment. High liquidation events are, however, usually corrected by subsequent price movements. Whether Bitcoin can maintain its price support at $111,000 will be a significant factor in determining whether it trends higher or falls back to lower levels.

A quick glance at the daily chart outlook reveals that the Bitcoin price dropped below the consolidation channel to $ 112,000 on 3 August. However, today, the bulls have shown strength, as the leading altcoin by market capitalization has rebounded towards the $ 114,000 mark. Meanwhile, the bulls remain in the upper hand, despite the recent dip. Currently, they have established immediate support around the 50-day SMA ($112,454) and the 200-day SMA ($99,407) level, which is upholding a bullish sentiment. 

Bitcoin Price
BTC/USD 1-day chart: TradingView

The Relative Strength Index (RSI) currently stands at 46.66, which is below the 50% mean level. The drop below 50 is signaling a red flag in the market, as further downside may be imminent if the bulls fail to push past the mean level. 

What’s Next for Bitcoin?

Looking ahead, the resistance zone between $116,000 and $122,093 is the next big test. If Bitcoin price breaks through with volume, we’re talking a potential run to $129,319, or beyond. Conversely, if it fails, traders should watch for a drop to the $100,000-$99,409 range, where the 200-day SMA might catch it. Moreover, Ali Martinez has noted that the $111,000 is a very critical support zone for BTC. If this support cracks, the next key demand zone sits around 90,000, according to the pricing Bands.

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