Bitcoin (BTC) is currently testing critical support near $111,000 after failing to extend its recent all-time highs above $126,000. The world’s largest cryptocurrency has shed nearly 9% on weekly charts, reflecting fading momentum amid broader market uncertainty, including renewed U.S.–China trade tensions.
Traders are now debating whether the current pullback represents a healthy consolidation before the next upward move or the start of a deeper correction. Bitcoin briefly dipped to an intraday low of $110,292 but has since stabilized around $111,300.
Technical indicators suggest bearish pressure is building. The 20-day and 50-day moving averages are trending lower, while a bearish MACD crossover has emerged, signaling that selling momentum may intensify if support breaks.
Technical Levels and Short-Term Outlook
Analysts are closely monitoring $107,000–$110,000 as a key short-term demand zone. A decisive break below this area could open the path toward $100,000, while a recovery above $115,000–$123,000 would be necessary to restore bullish sentiment.
Some analysts note a potential double-top formation around $126,000, suggesting that Bitcoin’s recent highs could be testing the market’s limits. A weekly close below $110K may trigger broader profit-taking among traders and institutional investors.
The Relative Strength Index (RSI) has fallen to the mid-40s, indicating cooling buying strength. This further reinforces the possibility of continued downside if Bitcoin fails to defend its support floor.
Whales and Institutional Activity Slow
On-chain data shows that Bitcoin whales are adopting a cautious stance, increasing short exposure and reducing aggressive accumulation. This shift aligns with ETF inflows slowing, which dropped by over $223 million this week after exceeding $2.7 billion the previous week.
The slowdown in institutional demand suggests a temporary pause following months of aggressive Bitcoin accumulation. Traders are watching how large holders adjust positions, as whale activity often signals potential market moves in the near term.
Macro Factors Weigh on Bitcoin
Bitcoin’s “digital gold” narrative has faced pressure as macroeconomic factors influence investor sentiment. Gold recently reached a record $4,200 per ounce, drawing some capital away from BTC. Weak U.S. economic data and tariff-related uncertainty have also pushed some investors toward traditional safe-haven assets.
These macro headwinds have contributed to the short-term bearish tone, emphasizing the importance of the $110K support level. Failure to defend this floor could accelerate selling pressure and trigger a deeper correction.
Rising Wedge Pattern Signals Risk
Bitcoin’s weekly chart shows a rising wedge pattern, a formation often considered bearish. If BTC closes the week below $110,000, the pattern projects a potential downside target around $74,000, representing a 34% correction from current levels.
Despite the bearish setup, long-term fundamentals remain strong. Bitcoin’s network hash rate and overall activity continue to rise, suggesting that any deep retracement could offer buying opportunities for patient investors.
What Traders Should Watch
Key levels for traders include:
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Support: $110,000, $107,000, $100,000
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Resistance: $115,000, $123,000, $126,000
A rebound from $110K could allow Bitcoin to attempt another push toward its all-time high, while a break below support may usher in a sharper correction. Investors should monitor whale activity, ETF inflows, and macro developments to gauge short-term sentiment.
Bitcoin Outlook
In the short term, Bitcoin faces bearish pressure, with sellers gaining momentum after failing to sustain new highs. The critical $110K support will likely dictate the next move, as a successful defense could reignite bullish momentum toward $126K, while a breakdown may see BTC testing $100K or lower.
Overall, the cryptocurrency remains fundamentally strong, with network metrics, institutional interest, and long-term adoption trends supporting its role as the leading digital asset. Traders and investors should approach the coming sessions cautiously, using technical levels to guide decisions while watching for potential catalysts that could reignite BTC’s rally.
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