This is more likely the start of a broader trend reversal than a healthy correction. The 1D chart shows strong distribution signals, and critical support levels are failing.

Key Evidence Supporting a Reversal:

1. Distribution on 1D Chart:

   • The steep sell-off with spiked volume (408.47M) exceeding the 24H average (153.38M) indicates institutional selling.

   • Price closed below the critical MA10 (flatlined near 122K) and failed to hold the psychological $120K support.

   • The swing low at $104,983 (June low) is now a major downside target.

2. Failed Support & Weak Bounce Attempts:

   • The $114K–$116K zone (June consolidation) is not holding. Price collapsed to $112,000 on the 1D chart with high volume.

   • On the 1H chart, the bounce off $118,847 lacked conviction: low volume (333.19M vs. 24H avg 233.19M) and rejection at MA10.

3. Bearish Momentum Indicators:

   • RSI (not shown but inferable): Likely oversold on 1H but not on 1D (steep drop suggests RSI >30).

   • MACD: Bearish cross on 1D accelerating downward.

   • OBV: The 1D volume spike on red candles signals distribution (OBV likely trending down).

4. Structural Breakdown:

   • The 1D chart broke below the 3-month trendline (connecting higher lows since April).

   • Lower highs/lower lows forming on both timeframes.

1. Does BTC bounce off $114K–$116K?
   → No. Price sliced through this zone on high volume (1D chart). It’s now resistance.

2. Does BTC reclaim MA10 on 1H & 1D?
   → 1H: Briefly reclaimed but quickly lost (MA10 flat/declining at ~119.2K).
   → 1D: MA10 is far above at ~122K – no reclaim attempt. Bearish.

3. Are RSI, MACD, or OBV signaling exhaustion?
   → RSI: No exhaustion yet on 1D (needs <30 with divergence).
   → MACD: Accelerating bearish momentum (no bullish crossover).
   → OBV: Distribution pattern suggests institutional outflow, not exhaustion.

My Strategic Recommendations:

• Short-Term (1H): Sell rallies to $118.8K–$119.2K (former support, now resistance). Stop-loss above $120K.

• Long-Term (1D): Hedge longs or reduce exposure. A close below $112,000 confirms a deeper drop to $104,983 (June low).

• Reversal Confirmation Needed:

  • Bullish invalidation requires a daily close above $122K (reclaim MA10 + trendline).

  • Monitor OBV for accumulation signs (rising on green candles).