Bitcoin Price Faces Resistance at $110K Amid Bearish Signals
The Bitcoin price recently climbed to $110,500 before encountering resistance. Technical indicators show bearish divergences across multiple timeframes, suggesting weakening momentum. This analysis examines the key factors influencing Bitcoin’s current market position.
Understanding the Bearish Divergence Pattern
When Bitcoin’s price rises while momentum indicators like the RSI decline, it creates a bearish divergence. These patterns often precede price corrections. Current charts reveal such divergences on 15-minute, 1-hour, and 4-hour timeframes.
Key Market Factors to Consider
- US Non-Farm Payroll data provided temporary support but couldn’t sustain the rally
- Neutral funding rates reflect trader uncertainty about continued gains
- Growing sell pressure near $110,000 indicates strong resistance
Expert Perspective on Market Conditions
“The technical setup warrants caution,” notes Vetle Lunde of K33 Research. “While some anticipate further gains, the divergences and resistance suggest potential downside risk.”
Monitoring Bitcoin’s Next Moves
Watch the $107,500-$106,000 range for potential support levels. Stay informed about market developments and technical indicators to navigate Bitcoin’s price fluctuations effectively.
