- Bitcoin is trading near $113,413, with the $111,500–$112,500 zone acting as a crucial demand area for potential bounce.
- Rejection at $124,000 keeps BTC rangebound; breaking this level is needed for further upside.
- Daily charts show a five-day bearish engulfing pattern and wedge breakdown, signaling fading momentum.
Bitcoin faces bearish pressure but could bounce if key support holds, while breaking resistance is needed for further upside. At the time of writing, BTC is trading at $113,413 with a 24-hour trading volume of $69.85 billion, a market cap of $2.26 trillion, and a market dominance of 58.88%. BTC price decreased by -2.06% in the last 24 hours.
Bitcoin Shows Bearish Signs but Could Bounce Soon
Crypto analyst Sam Price noted that Bitcoin has only just printed a five-day bearish engulfing pattern, which tends to signal fading momentum. He cautioned that a weekly close below $114,000 would lay the foundation for a drop towards $109,000.
BTC on the daily chart has also broken down from a rising wedge formation, which is usually bearish. Nevertheless, the price action indicates there is a possibility the market may transition into a bullish ascending triangle formation, which could help spark a bounce.
Bitcoin Faces Resistance with Support in Focus
Furthermore, analyst Crypto Patel highlighted Bitcoin’s rejection from the double top area around $124,000, which has kept the asset rangebound around $115,000. This rejection demonstrates a significant resistance area that bulls must break to unlock further upside.
The first major support level for BTC lies between $111,500 and $112,500, a significant demand zone where buyers are expected to step in. If this zone breaks down, the next key support level is at $101,400. On the upside, $124,000 acts as a significant resistance level, a double-top region that BTC must break to achieve further gains.
If Bitcoin remains above $111.500–$112.500, bulls may attempt a rally back up to $118,000 and $124,000, analysts say. A dip below this support zone, however, might trigger a further correction, driving figures toward $101K.
Also Read | Bitcoin at $100K: Golden Cross Signal Meets Holder Pressure
Bitcoin Derivatives Show Cooling Momentum
The Bitcoin derivatives market is seeing a slowdown, with trading volume falling -1.35% to $78.34 billion and open interest dropping -3.02% to $80.77 billion. This downward trend reflects that some players are pulling back, leading to slightly softer market activity compared to previous sessions.
Meanwhile, the OI Weighted funding rate is 0.0050%, reflecting a balanced sentiment among market participants. Such an even tone is a clear indicator of neither dominant long nor short investors, resulting in a fairly steady environment. This is generally an indicator of a stalemate in market momentum, where the market awaits the next major development.
Also Read | Bitcoin Bullish Momentum Builds as Golden Cross and Institutional Buying Align
