Bitcoin’s Struggle at $108K: A Bearish Divergence Looms
Bitcoin (BTC) is flashing warning signs as it faces repeated rejection near the critical $108,350 resistance level. Despite multiple attempts to break higher, the leading cryptocurrency is showing exhaustion, with declining trading volume and a developing bearish divergence on key technical indicators. This raises concerns that BTC may soon reverse toward lower support levels.
Key Bearish Signals to Watch
The current price action suggests a weakening bullish momentum:
- Bearish Divergence: The Relative Strength Index (RSI) is forming lower highs while Bitcoin prices test the same resistance, signaling fading buying pressure.
- Low Volume Breakouts: Recent upward moves lack significant volume, making them vulnerable to reversals.
- Failed Breakouts: Multiple rejections at $108K indicate strong selling interest at this level.
Where Could Bitcoin Drop Next?
If the bearish scenario plays out, traders are eyeing these critical support zones:
- $100,000: A psychological and technical support level.
- $95,500: The 50-day moving average, which has acted as dynamic support.
- $92,000: A stronger demand zone where buyers previously stepped in.
What This Means for Traders
While Bitcoin’s long-term outlook remains bullish, short-term traders should exercise caution. The bearish divergence and low-volume rallies suggest a potential pullback is brewing. Here’s how to navigate the market:
- Wait for confirmation: A decisive break below $105K could confirm the downtrend.
- Monitor volume: A spike in selling volume would strengthen the bearish case.
- Watch for reversals: If BTC holds above $100K, it could signal another attempt to break resistance.
As always, risk management is crucial in volatile markets. Whether you’re bullish or bearish, keeping an eye on these key levels will help you stay ahead of Bitcoin’s next major move.
