$BTC shows signs of potential exhaustion

Bitcoin price reached a new all-time high (ATH) of $111,980 on Thursday and declined by 3.92% on Friday. However, it found support around the $106,406 daily level on Saturday and recovered in the last three days. BTC faced a mild correction on Tuesday. At the time of writing, it trades at around $108,700.

#Bitcoin momentum indicators are flashing early warning signs of potential exhaustion. The Relative Strength Index (RSI) on the daily chart reads 64, pointing downward after being rejected from its overbought level of 70, indicating fading bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator also showed a bearish crossover on Sunday, giving sell signals and suggesting a downward trend.

If BTC faces a pullback, it could extend the correction to retest its daily support level at $106,406. A successful close below this level could extend the decline to revisit its psychologically important level of $100,000.

However, if BTC continues to recover and closes above its all-time high, it could extend the rally toward the key psychological level of $120,000.