- Bitcoin faces fragile balance as analysts eye $107K support while $112K resistance decides short term momentum in volatile trading.
- Declining momentum and weak RSI highlight selling pressure with Bitcoin stuck in a descending channel between $107K and $112K.
- Analysts warn that sweeping $107K may trigger reversal while failure risks deeper downside as market tests fragile confidence.
Bitcoin’s price action hovers near crucial support levels. On September 27, BTC/USDT traded at 109,407 USDT, reflecting a slight decline of 0.22 percent. The move follows persistent selling pressure after Bitcoin peaked above 119,000 USDT earlier in September. Analysts warn that markets could retest this critical low before finding direction.
Michaël van de Poppe, founder of MN Trading, believes Bitcoin could sweep the $107.2K level. He explained, “I wouldn’t be surprised if the markets are going to take out that low at $107.2K. Strong bounce of $ETH yesterday, indicating that the interest is more into Altcoins. I think that we’ll sweep the low and reverse from there. Invalidation? Breaking north of $112K for Bitcoin.” His outlook highlights the importance of $112K as the upside invalidation point.
Technical Picture Turns Cautious
Besides Van de Poppe’s observation, Daan Crypto Trades also mapped Bitcoin within a descending channel. He noted, “$BTC Watching this channel unfold over the week ahead. Currently pretty much in no man’s land in between local horizontal levels and right in the middle of the channel.
Above $112K would make me cautiously bullish again in the short term. Below $107.5K and I think we visit the bottom of the channel.” His analysis frames the market within three zones: bullish above $111,886, neutral in the middle, and bearish below $107,525.
Additionally, after significant falls, recent candlesticks show smaller bodies, indicating short-term consolidation. As momentum waned, the Relative Strength Index stayed below 40. Sharp declines and volume increases are consistent, indicating volatility but not a clear trend change. As a result, both analysts concur that Bitcoin is trading in a precarious equilibrium.
Support and Resistance Levels in Focus
Support clusters between $107,000 and $108,000, overlapping with the lower channel boundary. Traders therefore expect significant responses in the event that this level is broken. Resistance is still strong between $112,000 and $115,000, which is the top limit of the channel. Broader resistance is also seen at September highs of $116,813 and $119,504.
What happens with Bitcoin next could determine the momentum of the entire cryptocurrency industry. A clean sweep of $107K may trigger a reversal, but a breakdown risks opening deeper downside levels.
