Bitcoin slips to four-week low, tests 112k support amid mixed signals

Bitcoin tumbled to a four week low on Thursday, slipping below key support around 112,000 as traders grappled with conflicting technical signals and a string of macroeconomic data that eroded appetite for risk. Prices reached as low as roughly 108,700 on some exchanges, and were trading near 111,000 by late Thursday, leaving market participants debating whether the pullback is a re-test of support or the start of a deeper correction.

Technical analysts pointed to two sharply different reads on near-term direction. Crypto strategist CrypFlow said in a social media post that long-term cycle indicators are flashing bullish, noting that Bitcoin has reclaimed a critical 73 level on a proprietary 2M SNAB Relative Strength Index configuration that historically preceded past all-time highs. CrypFlow also highlighted a recurring weekly Bollinger Band squeeze and a bullish stochastic RSI cross, patterns he argued have reliably preceded strong upward momentum in the current cycle and could presage fresh rallies to new highs if they play out again.

At the same time, shorter-term charts and market structure show mounting downside risk. Four-hour momentum indicators registered bearish...