Even as Bitcoin (CRYPTO: BTC) slipped below $115,000 on Monday morning after rejecting resistance at $122,000 over the weekend, analysts are pointing to a decisive test at $112,000 that could determine whether the market stabilizes or accelerates lower.
What Happened: Pseudonymous crypto trader Ali noted on Monday that the rejection formed a deviation pattern, often a signal of weakness that can open the door to deeper pullbacks.
He said Bitcoin is currently trading within a range between $122,000 and $112,000, but a failure to hold the lower band could expose a liquidity gap down to $108,000.
“$112,000 must hold because on-chain data shows a liquidity gap between $112,000 and $108,000. Losing that support could quickly trigger a sharp …