Bitcoin Slides Below $114K as Bearish Signals Mount

• Bitcoin falling below $114,000, triggering fears of deeper market corrections.
• Key technical indicators, including RSI divergence and elevated NUPL levels, pointing to looming downside risks.

Bitcoin experienced a significant downturn as it dropped below the critical $114,000 support level for the first time since June 25, 2024, according to Cointelegraph on August 1, 2024. This level is a pivotal marker in the ongoing battle between bullish momentum and bearish pressure, and market participants are debating whether the price could face a more substantial pullback.

On the technical front, multiple signs indicate a weakening bullish trend. Cointelegraph reported a bearish divergence in Bitcoin’s weekly Relative Strength Index (RSI). While Bitcoin’s price made higher highs, the RSI showed lower highs. Historically, this divergence frequently precedes significant price declines. Analysts are closely monitoring Bitcoin’s 21-week exponential moving average, currently near $98,000, as a potential support zone if the decline intensifies.

In addition, the Net Unrealized Profit/Loss (NUPL) indicator has raised concerns. With over 69% of Bitcoin's supply in profit, the current reading aligns with levels that historically signal local market tops. Cointelegraph noted that similar NUPL levels in 2019 and early 2021 preceded sharp corrections, as profit-taking from holders increased selling pressure.

Furthermore, market analyst Michaël van de Poppe identified the $116,000 level as critical for Bitcoin to maintain its bullish trend. A prolonged drop below this threshold could trigger long-side liquidations, potentially bringing the price down to the $107,000–$110,000 range. Failure to reclaim the $116,000 level in the near term may open the possibility of a retreat toward $100,000.

Despite the warning signs, some analysts believe Bitcoin still has room to climb. Optimistic projections suggest the current consolidation phase might represent market strength. They believe strong institutional demand is offsetting profit-taking by long-term holders. Short-term prediction models even anticipate Bitcoin reaching as high as $127,000 by mid-August, while others foresee potential peaks in the $128,000–$140,000 range before any major reversal.

According to CoinMarketCap, as of August 1, 2024, 15:08 UTC, Bitcoin (BTC) trades at $113,282.84. This price reflects a 3.41% decrease over the past 24 hours. Its 24-hour trading volume rose by 29.34%, signaling active market participation during the ongoing volatility.