Market analysts are forecasting a potential short-term correction in Bitcoin’s price, with technical indicators suggesting a possible decline toward the $104,000 level before the cryptocurrency resumes its upward trajectory. According to recent technical analysis, Bitcoin may test its 50-week moving average – a key historical support level that has previously marked significant market turning points.
Technical analysts point to concerning leverage levels across cryptocurrency exchanges as a primary catalyst for this anticipated correction. The current market structure shows similarities to previous cycles where excessive leverage was systematically flushed from the system through price corrections, ultimately creating healthier foundations for sustained bullish momentum.
Historical data reveals that Bitcoin has frequently found strong support at its 50-week moving average during previous bull markets, with these levels often serving as accumulation zones for long-term investors. Market observers note that such corrections, while temporarily unsettling for traders, typically strengthen the overall market structure by eliminating overleveraged positions and establishing more sustainable price discovery mechanisms.
The potential move toward $104,000 would represent a healthy market reset according to technical analysts, who emphasize that such corrections are normal within broader bullish trends. Market participants are advised to monitor key support levels and leverage metrics for confirmation of this technical scenario playing out in the coming weeks.
