Based on the current technical and on-chain analysis, Bitcoin (BTC) is showing signs of potential short-term weakness, though not necessarily a full-blown crash. Here's a quick, clear summary of the key points and what they mean:
๐ Bearish Signals
RSI divergence:
Momentum Buyers' RSI dropped to 20 โ Indicates fading bullish strength.
Profit Takers' RSI rose to 77 โ Many traders are selling into strength.
96% of BTC supply in profit:
Historically, this level suggests the market is overheated and ripe for a correction.
Resistance at $106Kโ$108K:
This zone has previously triggered a 27% drop (from $109K to $78K in Jan).
Large ask walls at $106K suggest sellers are actively defending it.
๐ Support & Risk Levels
Psychological support at $100,000 is the key level to watch.
If buyers fail to reclaim and hold above $106K, a retest of $100K is likely.
Below $100K, liquidation risks could accelerate the drop temporarily.
๐ What Would Invalidate the Bearish Setup?
A strong daily close above $108K, turning resistance into support.
Renewed buying pressure on-chain and uptick in Momentum Buyers.
