Bitcoin (BTC), once again, is testing the critical support level above $111,000; traders are debating if the recent pullback represents the beginning of a more serious correction or the consolidation that will precede the next upward leg.
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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 daily price chart shows a downward trend. Source: BTCUSD on Tradingview
Bitcoin’s Momentum Fades, Tests its Key Support
Bitcoin has been trading at $111,300 for the last 24 hours. This is down approximately 1% from its intraday low price of $110 292. The asset is under pressure according to technical indicators. Both the moving averages of the 50 and 20 day periods are turning downwards, and the MACD has a negative crossover.
The Relative Strength Index has dropped to mid-40s. This indicates a cooling in buying power and potential further decline if the support is not maintained.
Analysts are eyeing $107,000–$110,000 as the crucial short-term demand zThe following are some of the most effective ways to increase your effectiveness.. 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.”
As Bitcoin ETFs slow, whales turn cautious.
BTC Whales’ increased exposure to short positions is reflected in the data on-chain, which signals caution from large BTC holders.
It is in line with the reports about falling temperatures ETF inflowsThis week, the price of gold declined over $223 millions after a week-long surge that saw it rise to more than $2.7 Billion. Analysts believe this cooling down reflects the pause in demand by institutions after months aggressive accumulation.
Traders are also closely monitoring macroeconomic developments as the gold rally has drew some money away from Bitcoin. “digital gold” narrative. The recent volatility in the U.S. and weak U.S. economic data have increased pressure on investors, driving them back to traditional safe-havens.
Analysts alert to rising Wedge Breakdown
Technically, Bitcoin’s weekly chart Shows a rising wedge, which is often a negative setup. Structure shows that, if BTC finishes the week at or below $110,000 then the potential target is $74,000. That would be a 34% decline.
But long-term indicators such as the hashrate and network activity are still strong. This suggests that any major retracement in price could be a great opportunity for investors who have patience.
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Bitcoin’s future depends on the bulls’ ability to defend $110K. The next move for Bitcoin could be a strong bounce from this point, which would set up another bid to $126K. However, failure to maintain support will likely lead us into a more severe correction.
Tradingview BTCUSD charts, ChatGPT chart.
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Source: www.newsbtc.com
