Key Insights:
- With a 4.7% price decline, Bitcoin (BTC) reaches the lower boundary of the descending channel pattern.
- Historically, whenever BTC price reaches this level, it witnesses a price reversal and a notable price uptick.
- The on-chain metric reveals that exchanges in the current market have witnessed an outflow of $228 million worth of BTC over the past 24 hours, hinting at potential accumulation.
Amid the ongoing market correction, the Bitcoin price has reached one of the key support levels, which hints at potential price recovery due to its past performance. However, this reversal could only emerge if it passes certain conditions; otherwise, it may continue to fall until it finds the next support.
So far, the Bitcoin Price stands at a key support level of $113,550 and has slipped over 2.60% in the past 24 hours.
Despite the price struggling to gain momentum amid this price recovery, traders and investors’ participation has soared significantly. CoinMarketCap data shows that Bitcoin’s 24-hour trading volume has jumped by 15%.
Bitcoin Price Action and Key Levels
According to technical analysis, with a 4.7% price dip in the past couple of days, Bitcoin (BTC) has reached the lower boundary of the descending channel pattern.
The four-hour chart reveals that BTC has been forming this pattern and hovering between upper and lower boundaries since July 2025.
The TradingView chart also reveals that whenever the BTC price reaches the lower boundary, it experiences an upside momentum, which occurs more than three times.
This market uncertainty has pushed the price to the lower boundary, where it has already begun to show signs of a reversal.
In the four-hour timeframe, BTC has formed a doji and an engulfing candle, which hint at a potential price reversal from the current level. Looking at the current market structure, history is once again repeating itself.
Based on the price action, if Bitcoin holds the $113,000 level, the asset could rise by 3.5% in the coming days.
However, if the downside momentum continues and BTC fails to hold $113,000, a quick drop could occur toward the next support near the $110,000 level.
Technical Indicators and Expert Comments
Looking at the current market structure, a well-followed crypto expert shared a post on X (Formerly Twitter) that a critical support wall for Bitcoin lies between $107,000 and $105,000. This could only be intact if the price fails to hold $113,000 level, else the price will reverse.
At press, Bitcoin’s Relative Strength Index (RSI) stands at 31, indicating that the asset is in an oversold territory and also suggests a potential recovery if the buy pressure emerges.
Whereas the other technical indicator, Supertrend, is in red and above the price, indicating that the asset is in a downtrend. Additionally, it also suggests that Bitcoin is in a bearish trend and sellers are dominating.
$228M in Bitcoin Exits Exchange
Given the current market sentiment, it appears that investors and long-term holders have been taking advantage of this price dip, as millions worth of assets are exiting the exchanges, as reported by the on-chain analytics tool Coinglass.
Data from the spot inflow/outflow reveals that over $228 million worth of BTC has exited the exchanges over the past 24 hours. This substantial outflow of tokens from the exchanges hints at potential accumulation and can cause buying pressure and asset to observe the selling pressure.
Combining on-chain data with technical analysis paints a picture of potential reversal for Bitcoin. If BTC holds the $113,000 support, history may repeat itself, with a short-term bounce likely. However, failure to hold this level could further send BTC to $110,000 or even the $105,000 support zone.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
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