Bitcoin continues to consolidate and shows signs of distribution, leading to an increase in bearish market pressure.
Market Overview
Despite multiple failed attempts to break above the $108K resistance level, Bitcoin remains in a tight range. The market is currently caught between two liquidity zones: buy-side above $108K and sell-side below $100K. The RSI has dropped below 50 on both daily and 4-hour timeframes, indicating increasing bearish pressure.
4-Hour Chart Analysis
On the 4-hour chart, the price has formed a clear descending channel with repeated testing of support at $103.5K. The RSI around 41 confirms bearish sentiment. Liquidity levels around $102K and $103K can be quickly reached if the price closes below these levels, which may lead to deeper declines to key daily demand at $100K.
On-Chain Analysis
The whale ratio on exchanges has surged above 0.55, its highest level in over a year, which is typically considered a warning signal. This indicates that large holders are active on exchanges, likely preparing to sell. If this ratio remains elevated while BTC trades sideways or drops further, it may strengthen the case for a liquidity sweep below $100K.
Bitcoin continues its consolidation, and despite potential growth opportunities, current data signal a bearish market sentiment that may lead to price declines.
