Bitcoin price hits resistance at $112K after $108K dip
Bitcoin price dipped to $108,000 before rebounding, but now trades below a key six-month ascending trendline and faces resistance at $112,000. This barrier combines the horizontal level with a short-term descending trendline, creating strong overhead pressure. On the daily chart, the 200-day SMA offers support; past breaches of this moving average were followed by rallies once price reclaimed it. Short-term momentum indicators are resetting on the 4, 8 and 12-hour Stochastic RSI. However, the monthly chart shows a long upper wick near $116,000, marking one of the largest rejections in this bull run and signaling bearish divergence as RSI and Stochastic RSI turn down. Traders should prepare for choppy action in the short term, but longer-term signals warn of a possible market top and correction.
Bearish
The breakdown below the six-month ascending trendline and repeated rejections at $112,000 form a strong resistance zone, suggesting bulls lack momentum to push to new highs. Although the 200-day SMA provides support similar to past pullbacks, the monthly chart’s long upper wick near $116,000 and clear bearish divergence on RSI and Stochastic RSI mirror previous market tops in 2021. Short-term indicators may allow a brief pause or minor rallies, but the confluence of technical barriers and monthly sell signals points to increased risk of a larger correction. Traders should brace for potential downside pressure after recent gains.