Bitcoin shows signs of fatigue in its $108,350 resistance zone. With bearish divergence, volume reductions and repetitive failures, price action is at risk of low rotations towards critical support.
Bitcoin (BTC) had consolidated under a major zone of resistance of nearly $108,350 last week. Despite attempts to push higher, the price remains at its upper limit. Now, the emancipation of bearishness is developing, suggesting that recent rallys have lost momentum. If the seller intervenes at this level, it could trigger a rotation towards a value area around $100,960.
Important technical points
- $108,350 Resistance Zone: High time frame resistance with high confluence of value area
- Bearish emancipation: RSI has earned a lower high, but the price is higher
- Reduced volume profile: Lack of strong demand to break resistance structures
BTC/USDT (4H) Chart | Source: TradingView
Bitcoin’s rejection from $108,350 has formed a potentially low high, continuing the bearish structure that has been unfolding over the past few weeks. The level itself represents an important barrier, with multiple rejections identified as high supply zones. Without a decisive breakout, the price is more likely to rotate within established ranges.
Bearish divergence, where prices are pushed slightly higher while the RSI is weaker, is a typical early warning of fatigue. This branching is especially important when it occurs with important resistance, as it suggests that the bull is lacking in steam. Also, recent gatherings have shown that they may be driven by short-term momentum rather than sustained interest on shopping.
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Through this integration, volume has steadily declined. In the context of technical resistance and divergence, this amount of weakening reinforces the bias of bearishness. For a breakout to occur, strong volumes need to see changes in demand. Without it, the price is more likely to roll over and test the next major support. The points of control, and ultimately the value area is low at $100,960.
What to expect from future price action
As long as Bitcoin remains below $108,350, bias is bearish. A confirmed rejection backed by increasing sales volume could reduce the clean rotation to $100,960. If that level fails, there could be an additional downside towards the previous swinglow.
Alternatively, a $108,350 recovery on a strong volume could be the first bull signal, which could disable the current bear setup.
read more: Analysts say Bitcoin can hit a new ATH $116K this July
