A weekly bearish divergence suggests weakening momentum despite recent price highs.
Bitcoin is hovering near $104,884, with $103,939 as a key support level to watch in the short term.
The $110,000 zone continues to act as strong resistance, signaling a potential bearish retest underway.
This week, signs from the market and new price data point to a possible change in bitcoin’s short-term momentum. After gaining strongly in May, bitcoin is now revealing early indications of weakness just at a significant support area. If the support thresholds fail to be reclaimed and a suspected resistance is retested, the price is likely to move lower.
Technical Breakdown: Resistance Holds Firm
Chart analysis of Bitcoin's recent price activity shows a significant rejection at the $110,000 resistance level. The price has struggled to maintain its footing above this point, with the current price recorded at $104,884. This level—marked by a horizontal black line on the chart—acted as previous resistance earlier in the year before a breakout in May. The inability to hold above this line suggests a potential bearish retest is in progress.
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The chart further reveals a weekly bearish divergence, which has now been confirmed. This type of divergence occurs when the price makes higher highs while momentum indicators (like RSI or MACD) show lower highs. It typically precedes a price correction or reversal, hinting that buying pressure may be waning despite higher price prints.
Key Support and Resistance Levels
At present, Bitcoin is trading within a narrow 24-hour range between $103,939 (support) and $105,804 (resistance). The current price sits just below resistance, suggesting a tightly contested zone between bulls and bears. Should price action break below the established support, it could open the door to testing lower levels that were last visited in late April.
Conversely, reclaiming and holding above the black line resistance may invalidate the current bearish setup. However, technical patterns and the recent price structure give more weight to the downside risk unless strong bullish momentum returns soon.
Market Sentiment and Broader Implications
While Bitcoin’s 1.0% price increase in the past day provides a temporary reprieve, it has not been sufficient to reassert control above the critical resistance zone. Traders and analysts alike are closely monitoring this level, viewing it as a decisive battleground for the asset's short-term direction.
As Bitcoin hovers near this make-or-break point, the next few trading sessions may prove pivotal. A move below $103,939 could confirm a shift in momentum and potentially accelerate a deeper retracement. Market participants are advised to watch volume patterns and confirmation signals to validate the next leg of movement. Bitcoin is exhibiting classic signs of a bearish retest after failing to sustain gains above long-term resistance. Until key levels are reclaimed, downside risk remains in play.
