Bitcoin (BTC) faces mounting pressure as bullish momentum wanes near critical resistance levels, with the leading cryptocurrency consolidating below its all-time high. After an impressive rally that saw BTC surge past $100,000, buyers are now struggling to maintain momentum, raising concerns about a potential pullback.
This consolidation phase comes amid an interesting divergence with traditional markets. Despite growing institutional interest in Bitcoin as evidenced by recent major corporate purchases, the cryptocurrency’s price action has shown relative weakness compared to surging equity markets.
Technical Analysis Points to Critical Support Levels
The 4-hour chart reveals Bitcoin trading in a tight range between $105,700 resistance and $100,700 support. Multiple failed attempts to break above $103,600 suggest growing selling pressure at these levels. The 200 EMA ($96,121) and 200 SMA ($94,622) continue to provide broader technical support, though momentum indicators signal increasing uncertainty.
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Market Structure Remains Bullish Despite Short-term Weakness
While short-term indicators suggest caution, the broader market structure remains bullish above key support at $90,000. Recent analysis of market dominance patterns suggests this consolidation could be healthy for Bitcoin’s long-term trajectory.
Key Levels to Watch
- Critical Resistance: $105,700
- Immediate Support: $100,700
- Major Support: $90,000
- Volume Profile POC: $103,600
FAQ Section
Q: What could trigger a Bitcoin breakout above $105K?
A: A surge in institutional buying pressure or positive macro developments could provide the catalyst needed for a decisive move above resistance.
Q: Where is the safest stop-loss level for current Bitcoin longs?
A: Conservative traders are placing stops below $100,000, while more aggressive positions might use the $96,000 area near the 200 EMA.
Q: How does current volume compare to previous breakout attempts?
A: Current volume is notably lower than during previous attempts to break $105K, suggesting potential exhaustion in buying pressure.
