Bitcoin's risk is below $110,000 despite bounce. Have you got a 15% pullback?

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Bitcoin (BTC) is trying to regain its critical level of support after it fell below the recent $115,000. Nevertheless, some analysts warned that cryptocurrency is in the correction phase with a potential 15%-25% drop.

Bitcoin risk is below $110,000

On Monday, Bitcoin fell below the $115,000 level for the first time in nearly two weeks, retesting support of $114,500 before bounce. The flagship cipher has been hovering between local price ranges since August 7th, reaching its latest all-time high (ATH) of $124,200 before it was eventually rejected from the range high.

Currently, some market watchers have confirmed that BTC is in the corrective phase and may send cryptocurrencies below other important levels of support. Ali Martinez noted that recent rejections “came in the form of deviation, but often show weakness and open doors for a deeper pullback.”

Analysts say Bitcoin is trading in the price range of $112,000-122,000, suggesting that the local bottom is the next important level of support to see momentum fading.

Notably, cryptocurrency quickly bounced back from today’s decline, regaining its recently lost $116,500 breakout level and once again approaching the $117,000 area. For analysts, the confirmed rebounds reset bullish momentum and allowed prices to be sent to highs in the range.

However, if BTC prices drop again and $112,000 in support is not retained, the cryptocurrency risk will cause a $4,000 drop in the $108,000 area. Martinez emphasized that on-chain data shows a grasp of fluidity between these two levels.

Furthermore, the accumulation propensity score, which dropped to 0.20, indicates that holders are “redistributed Bitcoin, rather than accumulating at these levels.”

Has the price discovery been revised?

Analyst Rekt Capital pointed out that BTC failed to hold its significant $119,000 level in support on the weekly charts, closing on Sundays below the weekly bull flag pattern that had been developing since early July.

According to previous analysis, turning the bottom of the pattern into a resistance would be a bearish retest that could confirm a failure from the pattern and lead to a new retest of the $112,000 area.

In his recent performance, he claimed that Bitcoin has entered a second price discovery revision that has historically tracked the uptrend peak of the second price discovery during the fifth and seventh week.

“Interestingly, the risers formed last week quickly developed at the finish line in Week 6, as this risers saved the historical circularity that tends to be seen in price action throughout the cycle,” the analyst explained.

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Rekt Capital suggested that Bitcoin could transition into a revision period. Nevertheless, he noted that at this moment in the 2017 and 2021 cycle, the BTC pullbacks are 1-3 weeks, respectively, and 25% and 29% deep, so this revision may not last as long as the previous revisions.

“In both cases, these pullbacks were short and shallow due to the criteria for previous revisions in each cycle,” he detailed, and concluded that the BTC “should ideally resolve this pullback over the next few weeks, with a relatively shallow pullback of -15% to -25%.”