As reported by CryptoPotato, Bitcoin’s bullish surge towards the all-time high of $111K seems to be losing steam. The selling pressure at this critical level has been fierce, causing a struggle for BTC to reclaim the high ground. This suggests a likely phase of consolidation or a corrective action may be imminent.
Technical Analysis By ShayanMarkets
On the daily chart, Bitcoin’s rally shows clear signs of fatigue. The inability to surpass the $110K mark could indicate the formation of a double-top pattern, a well-known bearish reversal signal. Currently, Bitcoin is trading within a crucial price bracket, bordered by the $111K ATH and a fair value gap (FVG) between $103K and $104K. With the visible decline in bullish momentum, a short-term rejection and further consolidation within this zone seem probable. However, the FVG could serve as an important demand zone, potentially preventing more serious corrections and laying the groundwork for another attempt at the $111K peak.
Looking at the 4-hour chart, Bitcoin failed to set a new high above $110K, facing significant resistance at this level. This confirms the existence of strong selling pressure near the ATH, further solidifying $111K as a critical barrier. Bitcoin is now trading between two significant liquidity zones: one below $105K and another above $110K. These zones could spark interest from institutional investors and may result in short-term price volatility. A range-bound movement between these zones is anticipated until a definitive breakout, likely driven by a liquidity sweep in one direction or the other, occurs.
Sentiment Analysis By ShayanMarkets
Despite persistent selling activity from users on Binance Derivatives over the last 45 days, Bitcoin has held its ground between $100K and $110K. The Cumulative Volume Delta (CVD), a real-time indicator of net buy and sell volume, signals a strong selling pressure. However, the price’s resilience suggests an absorption phase, likely led by institutional investors or large players quietly accumulating.
This continuous divergence between the sell-side flow and the stable price action could mean that Bitcoin is establishing a robust base. If the current structure persists, with continued absorption within this range, the chances of a bullish breakout increase, potentially paving the way for a revived uptrend.
