Bitcoin has experienced a significant decline of over 13% in the past week, now hovering around the $105,000 mark. This downturn coincides with increasing attention on the gold markets and a general correction across various risk assets.

Despite this development, many traders view the current situation as a potential opportunity for market entry.

Market Correction Nears Buying Opportunity

Currently priced around $105,000 as per CoinGecko data, analyst Michaël van de Poppe has noted that attention appears to be shifting from Bitcoin, although he believes the existing range may present a buying opportunity.

“In these ranges, it’s getting into buy the dip area,” he stated.

A value zone identified between $104,000 and $106,000 has proven to be supportive during prior corrections. If Bitcoin’s value continues to drop, additional critical levels include $103,190 and $100,700.

Price Analysis

Source: Michaël van de Poppe/X

For a bullish shift, it’s crucial for Bitcoin to surpass the resistance level of $112,000, which corresponds with short-term resistance around $111,900. Such a breakthrough could pave the way to the $119,500 territory, potentially followed by a retest of record highs.

Recent movements indicate that liquidity was drawn down at higher levels, resulting in a sharp downturn. Analysts signify a critical zone near $120,000 that needs breaching for a new high.

Importance of the 21-Week EMA

On the weekly chart, Bitcoin’s current position is just below the 21-week exponential moving average (EMA), which has historically supported price trends during upward movements. Analyst Rekt Capital emphasizes that closing above the EMA is essential for maintaining the current structure.

A broader demand zone lies between $93,000 and $108,000, previously facilitating consolidation before the remarkable rally earlier in the year.

Increasing Trading Volume Amidst Price Decline

Despite the drop, trading volumes have surged. Reports indicate that Bitcoin’s weekly trading volumes are at a peak, suggesting heightened market engagement, even as Bitcoin nears short-term support levels.

While Bitcoin remains under scrutiny, gold continues to attract investor interest during this timeframe. Economist Peter Schiff remarked that Bitcoin’s dip serves as a “warning,” advocating for gold’s strong performance in recent months.

As the market evolves, traders are closely monitoring the $112,000 and $104,000 levels for the next significant signal.