Analysis of Bitcoin's current price dynamics shows that it is finding support at the $110K level but bearish sentiments may lead to further declines.
Daily Chart
On the daily chart, the asset has made a new lower low after breaking below the $120K level and exiting a large ascending channel. The $110K area currently provides support, halting the short-term bearish trend. However, the price has not yet shown an impulsive rebound from this zone, which could indicate a potential breakdown soon.
The RSI has also been below 50 for a while now, confirming the bearish momentum. This adds to the likelihood of a deeper drop in the coming weeks, which could potentially push the price down to the psychological support level of $100K.
4-Hour Chart
On the 4-hour chart, the price has been making lower highs and lows within a steep descending channel that started since the latest all-time high. The price has also briefly broken below the $110K support level before quickly rising again.
Bearish momentum, as indicated by the RSI, suggests that the price is likely to either respect the channel and decline further or even begin a short-term crash by breaking below the channel. This could lead toward the $104K bullish fair value gap or even revisit the $100K level if conditions worsen.
On-chain Volatility Analysis
The Exchange Whale Ratio highlights Bitcoin’s price action against the 100-day moving average of the Whale Ratio across all exchanges. The whale ratio represents the proportion of large inflows to exchanges coming from whales compared to overall inflows.
Historically, higher whale ratios indicate increased selling pressure, as major players tend to move funds to exchanges before distribution. In recent months, the whale ratio started a sharp rebound, moving higher alongside the latest price peak, potentially signaling a shift with whales preparing to offload positions.
Bitcoin's position suggests support at $110K, but prevailing bearish sentiment and recent whale ratio data present risks for further price declines.
