Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Bitcoin (BTC) is once again testing critical support above $111,000, with traders debating whether the recent pullback marks the start of a deeper correction or a healthy consolidation before the next leg higher.
After touching an all-time high above $126,000, the world’s largest crypto asset has shed nearly 9% on the weekly charts, reflecting waning momentum amid broader market uncertainty and renewed U.S.–China trade tensions.
BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview
Bitcoin Tests Key Support as Momentum Fades
Currently, Bitcoin is trading around $111,300, down roughly 1% in 24 hours, after briefly dipping to an intraday low of $110,292. Technical indicators show the asset under pressure, with the 20-day and 50-day moving averages turning lower and a bearish crossover emerging on the MACD.
The Relative Strength Index (RSI) has fallen to the mid-40s, signaling cooling buying strength and the potential for further downside if support fails.
Analysts are eyeing $107,000–$110,000 as the crucial short-term demand zone. A decisive break below this area could open the path toward $100,000, while a bounce above $115,000–$123,000 would be needed to restore bullish sentiment.
“Bitcoin’s structure suggests fatigue at the top, with a potential double-top formation visible around $126,000,” one market analyst noted. “A weekly close below $110K would likely trigger broader profit-taking.”
Whales Turn Cautious, Bitcoin ETF Inflows Slow
On-chain data indicates that BTC whales have increased short exposure, signaling caution among large holders.
This aligns with reports of falling ETF inflows, which declined by over $223 million this week after surging more than $2.7 billion the week before. Analysts suggest this cooldown reflects a pause in institutional demand following months of aggressive accumulation.
Meanwhile, traders are closely watching macro developments, as gold’s rally to a record $4,200 has drawn some capital away from Bitcoin’s “digital gold” narrative. Weak U.S. data and tariff-related volatility have added pressure, pushing some investors back toward traditional safe havens.
Analysts Warn of Rising Wedge Breakdown
Technically, Bitcoin’s weekly chart shows a rising wedge pattern, often a bearish setup. If BTC closes the week below $110,000, the structure projects a potential downside target around $74,000, representing a 34% correction.
However, long-term metrics such as hash rate and network activity remain strong, suggesting that any deep retracement could offer a buying opportunity for patient investors.
For now, Bitcoin’s next move hinges on whether bulls can defend the $110K floor. A strong rebound from here could set the stage for another attempt toward $126K, but failure to hold support risks ushering in a much sharper correction before the next major rally begins.
Cover image from ChatGPT, BTCUSD chart on Tradingview
