Bitcoin attempted to turn the $113,000 level into support on Wednesday, with traders bracing for possible weakness heading into the fourth quarter.
Bitcoin faces key levels
Analysts are focusing on likely rebound levels in the event of a further decline when assessing Bitcoin’s current price action. Michaël van de Poppe noted that the main question is whether Bitcoin will hold current key levels as support. If so, then the price around $115,000 and above represents another significant resistance point. Otherwise, there could be another decline towards the $108,000 to $106,000 zone, which would be considered a maximum buying opportunity.
Trader BitBull also monitored Bitcoin in terms of the 100-day exponential moving average (EMA-100). Bitcoin rebounded from this daily level, but there is a risk of a further decline. Last time, the loss of this level led to a massive capitulation. With the fourth quarter approaching, it is expected that whales could push the price below the EMA-100 to induce maximum fear in the market.
Bitcoin could fall to $94,000
Crypto investor Ted Pillows tracked Bitcoin’s relationship to the Nasdaq 100 index using the relative strength index (RSI). The daily RSI of the Nasdaq index reached 78, the highest level since July 2024. Historically, when the RSI was at this level, there was a 17% decline within 2-3 weeks. Given the strong correlation between cryptocurrencies and the Nasdaq, a similar development can be expected for Bitcoin and altcoins.
If a similar 17% retracement actually materializes, the price of Bitcoin could approach the $94,000 level. This scenario shows that the market remains in an uncertain phase and further developments will depend on Bitcoin’s ability to maintain key technical levels and investors’ response to market signals.
