Bitcoin’s recovery attempt is drawing attention after a week of steady losses, with one market watcher warning of a deeper fall if the coin fails to push past the $120,000 region.
According to technical analyst CasiTrades, Bitcoin touched a low of $112,500 earlier today, a level that aligned with multiple timeframe targets.
The move also came with bullish divergences on momentum indicators, which pointed to a short-term rebound. The analyst framed this drop as part of a corrective pattern, calling it Wave 1 of an A-wave.
The next stage, labeled Wave 2, is expected to deliver a relief bounce. CasiTrades suggested that this move could carry Bitcoin back into the $119,900 to $121,900 zone.
If rejection happens there, the decline could intensify into Wave 3, with possible downside reaching as far as $88,000.
Reports explained that the bearish scenario would be invalidated if Bitcoin could print a new all-time high beyond $124,500. That would necessitate a reset in the corrective setup, which would have bulls with more leverage in the short term.
As Bitcoin struggles with resistance, bigger-cap altcoins have been exhibiting mixed action. CasiTrades thinks that traders may move into these assets in Bitcoin’s downtime, anticipating that they will make more considerable movements in the meantime.
Market watchers say this kind of rotation is not unusual. When Bitcoin stalls at major resistance levels, traders often chase higher returns in altcoins that carry more volatility.
The focus remains squarely on the $120K–$122K area. A clean breakout would indicate that Bitcoin is gaining strength again, while rejection would validate CasiTrades’ expectation of a greater fall.
They are now considering those possibilities, with some waiting to build up on dips and others opting to remain in wait-and-see mode until the picture becomes clearer.
For the time being, the market is divided between anticipation of a rebound and fear of further correction. Altcoins are showing some relief with isolated areas of green, but the response of Bitcoin at resistance will tend to dictate the tone for the next few days.
Featured image from Unsplash, chart from TradingView
