Bitcoin Price at Critical $112K Support Amid Correction

Bitcoin (BTC) has pulled back from its recent local high of $123,000 to a key inflection point at $112,000. This level is significant as it aligns with the 50-day exponential moving average (EMA), which has historically served as dynamic support during bullish trends. Price action shows BTC currently holding above this support after a bounce.

Following a breakout in June from the $105,000–$107,000 consolidation range, Bitcoin rallied to $123,000. However, decreasing trading volume signaled waning momentum, leading to the current correction. The relative strength index (RSI) remains above 44, indicating BTC is still in a neutral-to-bullish range and not yet oversold.

The $112,000 mark is crucial for multiple reasons: it was a resistance zone where Bitcoin consolidated for nearly a month, it represents the neckline of the latest breakout pattern, and it coincides with the 50 EMA. Traders are watching closely to see whether BTC can hold this level or break lower.

If Bitcoin closes below $112,000, it could trigger a retest of the 100 EMA at $107,800 or even the 200 EMA slightly above $100,000. Conversely, holding above $112,000 could pave the way for another push toward the $120,000+ range.

Market sentiment remains cautiously bullish as long as BTC stays above this threshold. For traders and investors, $112,000 is more than a support level—it’s the dividing line between a short-term bullish continuation and a deeper market cooldown.

Bitcoin’s ability to defend this zone will likely determine the next major price move. With key technical indicators still in favorable territory, the coming days could be decisive for BTC’s mid-term trend.