Bitcoin Faces Critical Test With $105K Support Looming
Bitcoin (BTC) continues to struggle with downward momentum, with the daily chart showing that sellers are still in control despite attempts to hold key support zones.
The latest closing prices have hovered around the $108,000–112,000 range, reflecting heightened volatility and a battle between bulls defending support and bears pressing resistance.
Bitcoin Moving Averages and Momentum
The short-term exponential moving averages (9 EMA and 20 EMA) have both rolled over, with BTC trading beneath them.
This positioning signals that momentum remains in the hands of sellers. The spread between the two moving averages also highlights the lack of bullish conviction at current levels, leaving Bitcoin vulnerable to further downside unless buyers regain momentum.
Daily chart for WBTC/USD (Source: GeckoTerminal)
The MACD also added to this bearish backdrop. With the MACD line sitting well below its signal line and histogram bars staying negative, downward pressure has not yet eased.
Momentum remains skewed to the downside, suggesting any rallies toward resistance may be short-lived unless accompanied by a decisive shift in buying volume.
Meanwhile, the RSI is hovering near the lower 40s. This level reflects weak market strength, though not yet at extreme oversold territory. It suggests that sellers still dominate, but the risk of a relief bounce exists if demand picks up near strong support zones.
Also read: Bitwise Says Bitcoin Could Hit $2.97 Million in Bullish Case by 2035
Key Levels to Watch
Bitcoin’s nearest resistance levels lie at $109,584, $110,274, and $111,696. Reclaiming these levels would be critical to flipping short-term momentum and convincing sidelined buyers to step back in.
On the downside, immediate support sits at $105,681, followed by $103,985 and $101,508. A breakdown below these zones could open the door to deeper corrective moves.
Order Book Dynamics
The Bitcoin order book paints a tight battle between buyers and sellers.
A bid wall at $108,210 with 5 units (~$492K USDT) shows strong buyer defense, but an equally matched ask wall at $108,210.01 with 5 units (~$580K USDT) creates a near stalemate. This level is likely to act as a short-term battleground for the price’s direction.
Other notable layers of liquidity include a bid wall at $108,137.55 (~$199K USDT) and $108,193.60 (~$199K USDT), providing additional support. On the flip side, clearing the ask walls at $108,244.52 (~$308K USDT) and $108,447.35 (~$504K USDT) could give BTC the momentum needed to retest nearby resistance.
Expert Commentary
Jiahao Sun, CEO of FLock.io, shared insights into BTC’s price movements.
“Bitcoin’s price has recently plummeted to a seven-week low below $110K in what is a natural market correction following significant gains. Although it has kickstarted a cooling-off period and consolidation, it is still reflective of a maturing and dynamic asset class.
Incumbent investors are growing in numbers, alongside broader maturation of the altcoin market. This growth aligns with increasing interest from both retail and institutional investors, who are seeing the unique utility that altcoins provide over Bitcoin.”
Also read: Bitcoin Fair Value Near $126K as Volatility Hits Record Low: JPMorgan
Bitcoin Trading Outlook
From a trading perspective, the bias currently leans bearish. Short positions may look attractive if Bitcoin fails to reclaim the $109,584–$110,274 resistance zone, with potential targets around $105,681 or lower if bearish momentum accelerates.
On the other hand, aggressive long entries could be considered near the $105,681 support level, but only with tight risk management, as a breakdown below this area would invalidate the setup and expose BTC to further downside.
Until momentum indicators turn decisively bullish, traders may find it prudent to focus on short-term plays rather than long-term holds at these levels. A sustained daily close above $111,696 would be the first sign of bulls regaining control.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred.Readers should exercise caution before acting on this content.
