Bitcoin is facing pressure at the $108,350 resistance level, showing signs of a potential correction. This level has already been confirmed multiple times as a significant barrier.
Current Situation in the Bitcoin Market
Bitcoin has been consolidating under the resistance level of $108,350, which aligns with the upper boundary of the current trading range. However, attempts to break higher have failed, raising concerns of a potential downturn.
Technical Indicators and Their Significance
Charts indicate a bearish divergence: the relative strength index (RSI) is making lower highs while price increases. This signals that the momentum behind the recent rally is weakening. Additionally, declining volume indicates a lack of strong demand to overcome the resistance level.
Price Action Expectations in the Short Term
As long as Bitcoin remains below $108,350, the likelihood of a downturn increases. A confirmed rejection accompanied by increased sell volume could lead to a retest of the $100,960 level. Conversely, a breakout above $108,350 on high volume could alter the current bearish trend.
Thus, Bitcoin is at a critical juncture where further price movement significantly depends on its ability to break above the $108,350 level or confirm a bearish retracement.
