BEARS WATCH THE $7,120 SUPPORT AS BITCOIN PRICE WAVERS

The Bitcoin landscape remains a battlefield, with bulls and bears locked in a tense tug-of-war.Recent price action has investors on edge as Bitcoin teeters precariously around the crucial $7,120 support level. Bitcoin Price Continues to Fall as $7,120 Looks like Critical Support to Stave off Bear Market 2.0. This week isn t looking good for Bitcoin (BTCBTCThe leading cryptocurrency has struggled to maintain its footing, fueling concerns that a deeper correction, potentially a new bear market, could be looming.After a sidewards week where the expected trading range based on the Bollinger Band indicator was between $7,600 and $9,500, but with the Bitcoin price stagnating around $8,200, the market is primed for a significant move. A sidewards week for Bitcoin. Using the 1 day Bitcoin chart, last week s trading range was expected to be between $7,600 and $9,500 as per the dynamic support and resistance on Bollinger Band indicator. However, very few trading opportunities presented themselves as the Bitcoin price stayed planted in the middle around $8,200.Whether this move will be a bounce from this support or a break down into lower territory is the question on every trader's mind. Litecoin, Bitcoin Cash, Zcash, and Compound are showing signs of gathering strength after months of decline, as recent gains hint at potential reversals. Litecoin, despite a modest weekly uptick, finds itself at critical support and resistance junctures, suggesting a decisive move could be imminent. Meanwhile, Bitcoin Cash is testing resistance near $420, where a breakthroughThis article will delve into the key technical levels, potential scenarios, and factors influencing Bitcoin's current price wavering, offering insights to help navigate this volatile market.

Bitcoin Price Analysis: A Knife's Edge

Bitcoin is currently trading in a bearish zone, struggling to stay above the $7,000 support area against the US Dollar. Dogecoin is the OG of meme coins. Created in 2025, it started as a joke but has built a massive community over the years. With no hard supply cap and a Proof-of-Work blockchain, Dogecoin became known for its friendly culture (like online tipping and charity fundraisers) and for not taking crypto too seriously .As noted on the hourly chart, there is a connecting bearish trend line forming with resistance near $7,120 on the BTC/USD pair (data feed from Kraken). Source code of the paper: RetrievalQA: Assessing Adaptive Retrieval-Augmented Generation for Short-form Open-Domain Question Answering [Findings of ACL 2025] - hyintell/RetrievalQAThis level acts as a critical juncture, with the bears watching closely, ready to capitalize on any weakness.

The price is, as some analysts would describe it, dancing on the edge of a knife.A looming head-and-shoulders pattern, if confirmed, signals potential further downside. Bitcoin saw a sharp $4,000 price drop during the July 30 Asian trading session after hitting resistance levels, ending around $66,500. (ZHO)The price is retesting the neckline of this pattern, and traders are bracing for fresh selling pressure.

Critical Support and Resistance Levels

Understanding the key levels is paramount for navigating the current market conditions.Here's a breakdown of the immediate areas to watch:

• Immediate Resistance: $7,240, then $7,400.Bitcoin needs to recover above these levels to alleviate immediate downside pressure.
• Critical Support: $7,120, then $7,000. Price retests neckline as traders brace for fresh selling pressure below $100K. RSI holds around 50, keeping both bounce and breakdown scenarios in play. The price of Bitcoin is dancing on the edge of a knife. A looming head-and-shoulders pattern signals potential trouble. Traders watch closely as BTC clings to the neckline.A break below these could trigger a more significant sell-off.

The recent sideways price action indicates a period of consolidation and indecision.The sideways action is reflected in last week's trading range that according to the 1 day Bitcoin chart, was expected to be between $7,600 and $9,500 as per the dynamic support and resistance on Bollinger Band indicator. Fidelity's fixed income research tools can help you find the right bonds, CDs, bond funds, and money market funds to meet your needs.However, very few trading opportunities presented themselves as the Bitcoin price stayed planted in the middle around $8,200.

Bear Market 2.0?Assessing the Risks

The phrase ""Bear Market 2.0"" is circulating among investors, reflecting concerns about a potential continuation of the downtrend.Several factors contribute to this fear:

• Struggling to Hold Support: As we've established, Bitcoin is consistently finding it difficult to maintain levels above key support zones.
• Bearish Indicators: Technical indicators are, for the most part, continuing to point towards a bear market environment.

However, it's important to avoid knee-jerk reactions. Bitcoin price is struggling to stay above $7,120 and $7,000 supports against the US Dollar. BTC needs to recover above $7,240 and $7,400 to avoid a strong decline.A break below $7,000 would certainly amplify bearish sentiment, but it doesn't automatically guarantee a full-blown bear market.Monitoring market sentiment and other relevant factors will be important to avoid jumping to conclusions. The flat bottom pattern of the candlestick suggests strong support in the area below, but the overall trend is still dominated by bears. The RSI indicator shows that the price may have recovered after entering the oversold area, and the MACD indicator, although it shows that the bears are dominant, has signs of a shA measured response is generally the best strategy.

The Ether-Bitcoin Ratio and Market Indecision

The ether-bitcoin ratio is a fascinating metric that reveals insights into the relative strength of Ethereum versus Bitcoin.Currently, this ratio has carved out a symmetrical triangle pattern. Related: Sorry bears Bitcoin analysis dismisses $107K BTC price double top Both $91,800 and $100,700 feature in his latest analysis, with the latter described as a point of interest.This pattern, formed by two converging trendlines, suggests that neither the bulls nor the bears are willing to assert dominance over the price action.

This indecision in the ether-bitcoin ratio further highlights the overall uncertainty in the cryptocurrency market.

Navigating the Uncertainty: Strategies and Considerations

Given the current uncertainty, what strategies can traders employ to navigate this market environment?

1. Risk Management is Key: Implement stop-loss orders to limit potential losses if the market moves against you.
2. Reduce Position Size: Consider decreasing the size of your positions to mitigate risk exposure.
3. Stay Informed: Continuously monitor market developments, news, and technical indicators.
4. Don't FOMO: Avoid making impulsive decisions based on fear of missing out.
5. Dollar-Cost Averaging: If you're a long-term investor, consider dollar-cost averaging to accumulate Bitcoin gradually, regardless of short-term price fluctuations.

Bitcoin's Sideways Dance: What's Next?

Last week's trading action was characterized by a lack of clear direction. The ether-bitcoin ratio has carved out a symmetrical triangle, identified by the two converging trendlines, indicating unwillingness among bulls and bears to lead the price action.Using the 1-day Bitcoin chart, the expected trading range was between $7,600 and $9,500, according to the dynamic support and resistance on the Bollinger Band indicator.However, the price remained largely stagnant around $8,200, offering limited trading opportunities.

This sideways movement suggests a period of consolidation, where the market is waiting for a catalyst to trigger the next significant trend.Whether that catalyst will be a positive development that leads to a bull rally or a negative event that triggers a steep sell-off remains to be seen.

Altcoin Opportunities in a Bitcoin Downtrend?

Interestingly, while Bitcoin is struggling, some altcoins (alternative cryptocurrencies) are showing signs of strength. If the Fed hints at tightening, the rocket might need to refuel mid-air. 🧭 Key Levels to Watch Technically, the $111,900 print is your short-term ceiling. It s the new line in the sand the price everyone s watching, waiting for a clean break or a hard rejection. On the downside, $105,000 $106,000 is developing as support.Litecoin, Bitcoin Cash, Zcash, and Compound are displaying potential for reversals after months of decline.These gains hint at buying opportunities for altcoins as investors attempt to shift to assets with the potential for more exponential growth when Bitcoin is stagnant.

For example, Bitcoin Cash is testing resistance near $420. Using the 1 day Bitcoin chart, last week s trading range was expected to be between $7,600 and $9,500 as per the dynamic support and resistance on Bollinger Band indicator. However, very few trading opportunities presented themselves as the Bitcoin price stayed planted in the middle around $8,200.A breakout above this level could signal further upside potential.

Major Bitcoin Price Drop Alert: Crash To $98,000 To Fuel Altcoin Buying Opportunity

While seemingly counter intuitive, a potential drop for Bitcoin could be the catalyst needed to fuel growth in altcoins.One prediction that a crash of Bitcoin to $98,000, or other similar predictions, could free up capital to flow into smaller, more volatile altcoins. Bitcoin Price Near to Critical Support at $7,120; Must Hold to Avoid a New Bear Market By evilchild In Crypto Report Posted Octo 0 Comment(s) This post was originally published on this siteThis is because traders may see these alts as a way to capture larger potential gains.However, always conduct thorough research before investing in any altcoin as risk management is key for these extremely volatile assets.

Understanding Technical Indicators

Technical indicators can provide valuable insights into potential price movements.Let's explore a couple of commonly used indicators:

• Relative Strength Index (RSI): The RSI is a momentum oscillator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of an asset.An RSI reading above 70 typically suggests overbought conditions, while a reading below 30 indicates oversold conditions.Currently, the RSI is hovering around 50, indicating neither overbought nor oversold conditions, leaving room for both bounce and breakdown scenarios.
• Moving Average Convergence Divergence (MACD): The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices. Bitcoin price rebounds to $61,000 amidst positive signals and ETF inflows. Analysts see potential for $500,000 by 2025. (HIN)It consists of the MACD line, the signal line (a moving average of the MACD line), and a histogram that shows the difference between the two lines.Crossovers between the MACD line and the signal line can indicate potential buy or sell signals.

It's crucial to remember that technical indicators are not foolproof and should be used in conjunction with other forms of analysis.

Dogecoin and the Meme Coin Phenomenon

While Bitcoin is facing its challenges, it's worth noting the enduring popularity of meme coins like Dogecoin. Bitcoin struggles to stay above support levels, as indicators continue to point to a bear market BitcoinNews BitcoinPrice Bear A7consultancy NextFuture NF A7C JabatanCryptoFintechCreated in 2013 as a joke, Dogecoin has cultivated a massive community and has become known for its friendly culture and charitable endeavors.Meme coins, while often volatile, represent a unique facet of the cryptocurrency landscape.

Potential Catalysts for a Bitcoin Reversal

Despite the current bearish sentiment, several potential catalysts could trigger a Bitcoin reversal:

• ETF Inflows: Positive inflows into Bitcoin exchange-traded funds (ETFs) could boost demand and drive prices higher.
• Positive Regulatory Developments: Clear and favorable regulatory frameworks could attract institutional investors and boost market confidence.
• Macroeconomic Factors: Changes in macroeconomic conditions, such as inflation or interest rates, could influence Bitcoin's price.

The Long-Term Outlook for Bitcoin

While short-term price fluctuations are inevitable, the long-term outlook for Bitcoin remains positive for many investors.Some analysts even predict Bitcoin reaching $500,000 by 2025, driven by factors such as increasing adoption and limited supply.

Michael van de Poppe, for example, expects consolidation before another upward trend, driven by positive market sentiment.

Conclusion: Watching the $7,120 Level

As Bitcoin price wavers, all eyes are on the $7,120 support level. ===== U.S. stocks closed divergently on Monday, with the Dow closing up 0.32%, the S P 500 and the Nasdaq rising slightly, albeit by 0.09% and 0.02%, respectively.This critical juncture will likely determine the near-term direction of the cryptocurrency market.While bearish indicators and a looming head-and-shoulders pattern raise concerns, potential catalysts for a reversal exist.By understanding key levels, employing risk management strategies, and staying informed, traders can navigate this uncertain environment. The Bitcoin price is still ping-ponging between support and resistance, but is still moving in favor of the bulls at this point. This is due to the fact that Major Bitcoin Price Drop Alert: Crash To $98,000 To Fuel Altcoin Buying OpportunityKeep a close watch on the $7,120 support, as a break below could signal a deeper correction. A sidewards week for Bitcoin. Using the 1 day Bitcoin chart, last week's trading range was expected to be between $7,600 and $9,500 as per the dynamic support and resistance on Bollinger Band indicator. However, very few trading opportunities presented themselves as the Bitcoin price stayed planted in the middle around $8,200.Remember, thorough research, careful consideration, and a long-term perspective are essential for success in the world of cryptocurrency investing.Always do your own research before making any investment decisions.