Bitcoin Price Flashes Reversal Signals — Can the Bulls Regain Control?
Bitcoin (BTC) is trading near a crucial resistance zone as momentum indicators hint at a potential trend shift on the daily chart.
After a brief rebound above $111,000, BTC continues to face heavy sell-side pressure, though improving momentum and thinning order book resistance suggest the bulls may be preparing for another leg higher.
Also read: Tom Lee and Peter Brandt Issue Stark Bitcoin Warning — “50% Crash Still on the Tableâ€
Bitcoin Bulls Test Key Resistance Levels
BTC’s recent price action shows a gradual recovery from the $108,000 region, with the coin now hovering just below critical resistance at $111,700. This level, aligned with prior highs and cluster resistance, remains the main obstacle for buyers. Clearing it could open the path toward the next major ceiling near $117,000 — a zone that historically attracts profit-taking.
On the downside, Bitcoin maintains a series of higher lows, hinting at strengthening accumulation. Immediate support sits around $110,600, with secondary cushions at $108,900 and $108,200. A breakdown below these zones would invalidate the short-term bullish setup and potentially trigger a deeper correction.
Technical Indicators Signal Neutral-to-Bullish Momentum
The exponential moving averages (EMAs) indicate a slow but visible contraction between the short-term 9-day and the longer 20-day averages.
Daily chart for WBTC/USD (Source: GeckoTerminal)
While the shorter EMA remains below the longer one — typically a sign of continued caution — the gap between them is narrowing, suggesting that bearish pressure is easing and a bullish crossover could form in the coming sessions if momentum continues upward.
The MACD histogram supports this interpretation, with negative momentum steadily fading. The indicator’s bars are contracting toward the zero line, reflecting that selling pressure is losing strength as buyers regain control.
Meanwhile, the RSI has recovered from oversold conditions and is now trending near the midline, signaling neutral-to-bullish sentiment and the potential for a continuation if buying volume picks up.
Order Book Dynamics Point to Short-Term Range Play
Order book data reveals an interesting balance between bid and ask walls.
A sizable bid wall at $111,435 holds about 12 BTC (≈$1.35 million), which currently supports the price from a sharp downturn. Beneath it, smaller bids at $111,195 and $111,116 provide additional short-term cushions. Should these supports weaken, a minor 0.3% pullback could follow before bulls reassert control.
On the upside, ask walls at $111,435, $111,497, and $111,500 suggest thin liquidity zones that could be cleared with moderate volume, potentially allowing Bitcoin to climb slightly higher toward the $111,700 resistance area. A sustained breakout above that level may accelerate buying activity and confirm a trend reversal.
Potential Bitcoin Trading Scenarios
For long traders, an ideal entry could be found on a confirmed breakout and close above $111,700, targeting the $117,000 resistance region while maintaining tight stop-losses below $110,600 to mitigate downside risk.
Conversely, short traders may find opportunity near the upper boundary if the resistance holds firm and momentum wanes, aiming for a retracement toward $109,000–$108,200 support levels. A breakdown below these zones would signal a deeper correction phase.
At present, Bitcoin appears to be in a transitional phase, with improving sentiment but lingering overhead pressure. The next 24–48 hours could determine whether bulls can establish dominance or whether bears will seize the moment to push prices lower.
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.
