Bitcoin encountered significant resistance near the $110,500 level despite a recent price surge, exhibiting concerning bearish divergences across multiple short-term timeframes.
Technical momentum indicators, including the Relative Strength Index (RSI), are trending downwards on 15-minute, one-hour, and four-hour charts. This weakening momentum suggests potential retracement towards key support zones between $106,000 and $107,500.
Market sentiment reflects uncertainty, highlighted by persistently neutral funding rates. Concurrent liquidity sweeps and elevated sell pressure above the $110,000 threshold heighten concerns of a potential bull trap.
Traders are advised to monitor critical price levels closely. Bitcoin’s current behavior near the $110,000 resistance is characterized by conflicting technical signals. Confirmation is needed to determine a decisive breakout or reversal.
Despite the prevailing bearish divergences and downward momentum indicators, Bitcoin retains a path for bullish continuation. A breakout above the $112,000 level remains feasible, contingent on a supportive increase in both momentum and open interest.