's recent sideways trading within a narrow $500 range since hitting its all-time high of $112,000 on May 22 has sparked debate among traders and analysts. The lack of upward momentum indicates potential vulnerability to a downturn, especially if key resistance levels fail to hold.
Current market Resistance and Rejection
analysts highlight that bitcoin is struggling to break above the $106,000–$108,000 resistance zone, a critical threshold for sustaining its rally. A rejected attempt near this level has already led to liquidations and a dip back toward the $104,000–$105,000 range. As Michaël van de Poppe notes, failure to surpass this resistance could trigger a revisit to lower support levels around $100,000 by June.
Technical Indicators Signal bearish Divergence
One of the most telling signs of an impending correction is the bearish divergence on ’s weekly chart. The has made higher highs, while the Relative Strength Index (RSI) shows lower highs, indicating waning momentum.
Historically, such divergence precedes reversals or significant pullbacks, as seen before the 2019 and 2021 peaks. If this pattern repeats, bitcoin may target the 50-week exponential moving average near $85,000 as a logical correction point.
Profit-Taking Metrics and market Sentiment
bitcoin’s Net Unrealized Profit/Loss (NUPL) metric nearing 0.5–0.6 suggests many holders are in profit, which can lead to increased sell pressure. This setup mirrors previous tops in 2017 and 2021 that preceded sharp corrections.
Despite some bullish outlooks projecting over $150,000 by year-end, current technical signals favor caution. More than 30 indicators point toward a potential mid-cycle correction toward $85,000.
Implications for Crypto Investors and market Trends
Understanding these signals helps traders gauge the risk of a downturn in the crypto . As bitcoin struggles at key resistance levels and technical divergence intensifies, cautious positioning becomes advisable for those holding long positions.
In the broader crypto ecosystem, rising profit-taking and weakening momentum could influence altcoins and other digital assets as well. Staying informed on macro trends and technical cues remains essential for navigating volatile markets.
Conclusion
While 's bullish fundamentals remain strong for many investors, current technical indicators warn of a possible correction toward $85,000 if resistance levels give way. Monitoring these signals is crucial for anticipating future movements amid ongoing uncertainty.
