Bitcoin Price Tests $110K Support, Risks Deeper Decline
Bitcoin price has entered a corrective phase after breaking down from a rising channel near the $124K all-time high. The cryptocurrency now hovers around the critical $110K support, aligned with its 100-day moving average. Failure to reclaim this level could open the door to further declines toward the $104K fair value gap and the $90K zone. Short-term indicators, including the RSI on the daily chart, confirm bearish momentum with readings below 50. On the 4-hour chart, Bitcoin price displays a controlled pullback within a descending channel, testing mid-range resistance at $110K. A successful breakout above this level may trigger a rebound toward $117K, but sellers have shown strength at each rally. On-chain metrics, such as the adjusted SOPR, reveal increased profit-taking as readings struggle around the breakeven level of 1.0, signaling that holders are realizing gains. Overall, the market is in a cooling-off period, and the next few days will be critical to determine if the pullback extends or buyers regain control. Traders should monitor the $110K support for signs of stability or weakness to guide short-term trading strategies.
Bearish
The breakdown below the rising channel and rejection at the $124K high signal weakening bullish momentum. Daily RSI reading below 50 confirms sellers dominating short-term price action. The critical $110K support, aligned with the 100-day moving average, now acts as a make-or-break level. Failure to hold could accelerate a move toward the $104K fair value gap and the $90K zone, areas likely to see aggressive buying but representing deeper declines. On-chain metrics, such as the adjusted SOPR, show increased profit-taking with readings around 1.0, indicating that holders are unwilling to risk extended drawdowns and are realizing gains. Historically, similar profit-taking phases have led to further pullbacks before new bullish legs emerged. Therefore, the current environment favors bears in the short term, although a rebound above $110K could neutralize the bearish bias. Traders should watch for support strength or breakdown to gauge whether the correction will deepen or if a stabilization sets the stage for renewed upside.