$BTC Based on the screenshot of the BTC/USDT chart on Binance in the 4-hour (4H) timeframe, here is the technical analysis of the reasons for the decline in BTC price:

1. Rejection at Resistance

BTC price briefly touched the area of 111,980 USDT, which is likely a strong resistance. After touching that level, there was a strong rejection, and the price fell drastically. This indicates significant selling pressure in that area.

2. Bearish Candlestick Pattern

There are several consecutive long red candlesticks indicating seller dominance. This indicates a strong bearish momentum.

3. High Volume on Decline

Trading volume (see the histogram below the chart) increased as the price fell, confirming that this decline is supported by large volume. This indicates massive selling.

4. MACD Bearish Crossover

The MACD indicator shows that the DIF line has crossed the DEA line from above, which is a bearish crossover signal. The MACD value is also negative, indicating that the downward momentum is getting stronger.

5. Previously Overbought

If BTC was previously in an overbought condition (too high too fast), then a correction is reasonable. Although RSI is not displayed, the volume and candles indicate a technical correction.

Conclusion:

The decline in BTC is likely caused by:

  • Selling pressure in the resistance area around 112K.

  • Correction after a significant rally.

  • Bearish technical signal (MACD, volume, candlestick).

  • Potential profit-taking by short-term traders.

The possibility of a pullback does exist, but to confirm it, we need to see several confirmation signals from the technicals. Based on your chart (4-hour timeframe), the current downward momentum is still strong, but there are several things we can monitor:

Pullback Scenario Likely to Occur If:

Price Touching Strong Support and Not BreakingNearest support level: around 107,600 - 107,000 USDT.

  1. If the price bounces from this zone with increased buying volume, that is an early signal of a pullback.

  2. Confirmation from Reversal Candlestick

  3. Monitor candles like pin bars, dojis, or bullish engulfing near support. That could be a sign that buyers are starting to enter.

    1. Positive Divergence on MACD or RSI

  4. If the MACD histogram starts to shrink (weakening downward momentum) or the RSI forms a bullish divergence, the potential for a pullback increases.

  5. Buying Volume Increases

    • A healthy pullback is usually followed by significant buying volume as the price bounces.

  6. However, If There Is No Pullback, Then:

If the price breaks down support at 107,000 with high volume, BTC is likely to continue falling to the next support at 105,500 or even 103,000.

Temporary Conclusion

For now, there is no confirmation of a pullback. Selling pressure is still evident. Be patient and wait:

  • Confirmation of a reversal candle

  • MACD is starting to reverse

  • RSI is not dropping deeper (if visible)

If you want, I can help create a complete pullback and breakdown scenario along with entry & exit points.

#MarketPullback