Bitcoin Shows Bearish Divergences Across Timeframes, Rally Above $110,000 May Face Resistance

Key Points

1. Bitcoin's price surge to $110,500 faced significant resistance, with bearish divergences noted on 15-minute, one-hour, and four-hour charts.

2. Momentum indicators like the Relative Strength Index (RSI) are trending downward, suggesting potential retracement toward support levels between $106,000 and $107,500.

3. Neutral funding rates reflect market uncertainty, with liquidity sweeps and sell pressure indicating a potential bull trap above $110,000.

4. Traders should monitor key levels for signs of a confirmed breakout or reversal, as Bitcoin's price behavior near $110,000 is characterized by conflicting signals.

5. Despite the bearish signals, the potential for a breakout above $112,000 exists if momentum and open interest align.