Bitcoin Price continues to grab headlines as it navigates a complex financial landscape. Currently hovering around the $105K mark, Bitcoin’s recent attempt at recovery follows a significant demand downtrend. However, the cryptocurrency now encounters substantial overhead resistance coupled with dwindling on-chain participation.
Although Bitcoin Price sees buyers stepping in, the market structure suggests that this could merely be a relief rally unless there’s a noticeable increase in follow-through volume.
Technical Analysis: Bitcoin Price
The daily chart illustrates Bitcoin Price reacting from a crucial demand zone near $100K. After facing a sharp rejection from the $114K region, BTC has formed a lower low and is now retesting a previous breakdown level. This level has transformed into a significant supply zone, ranging from $106K to $110K. Both the 100-day (yellow) and 200-day (blue) moving averages have flipped above the current Bitcoin Price, now acting as dynamic resistance.
Moreover, the RSI remains below 50, indicating weak momentum for the time being. If buyers manage to reclaim the $110K order block and maintain their position above it, the next resistance could be around $114K. Conversely, failure to reclaim could push the Bitcoin Price back into the $100K zone or even lower.
4-Hour Chart Analysis
The 4-Hour chart shows Bitcoin Price unfolding within a falling wedge, which it is attempting to break out from. The price has climbed back into a short-term resistance zone near $106K following a clean reaction from the $100K demand zone.
The RSI has slightly cooled off after reaching near-overbought levels, indicating signs of consolidation. A clear breakout above the wedge and a strong close above $110K would signal potential continuation. However, if this zone rejects the Bitcoin Price again, another dip to the $100K level would be expected.
On-Chain Analysis: BTC Participation
On-chain data reveals a concerning decline in active addresses. Despite Bitcoin Price holding above $100K, the number of unique daily participants on the network has been steadily decreasing since early 2025. This divergence between price and network activity suggests that the current rally lacks broad support from increased usage or transaction volume.
Such a drop in active addresses often signals weakening retail or organic demand. If this trend persists, it could cast doubts on the sustainability of the current Bitcoin Price levels, especially if no new participants are entering the market.
